I imagine people who own single family homes in nice suburbs are pretty happy about it, especially if they bought it when prices were half of what they are currently and are paying <3% interest.
Probably the opposite effect for SFHs in the urban areas. People usually prefer living in a detached house, especially when raising a family, and those are gradually being replaced by these multi-family dwellings, so the supply of them is actually going down.
That's why they are urban areas, not suburban or rural.
> People usually prefer living in a detached house, especially when raising a family
I also think this is kind of a US-centric experience, or at least doesn't take pricing and location into account. I suppose most people would prefer a single family home in central Manhattan but that doesn't exist, and if it did it would be unaffordable.
Now a single family detached home with a convenient transit commute into the city would be great. The US isn't great at building those either.
I don't think it's that simple. I mean, everyone would love a big house on a big yard that is close to everything, but approximately nobody gets to do that. In reality there are always tradeoffs, and the the tradeoffs build in incentives - sometimes intentionally, sometimes not, that people respond to. In a lot of the US those incentives have skewed pretty hard recently to exurban singles but that's not universal.
These sorts of things are hugely affected by infrastructure planning and subsidies, etc. At the end of the day people choose between the options they have, not the ones they wish they had.
That seems highly unlikely. Let's look at how SFH have become very affordable in the densest area in the US, Manhattan. Or the second densest, SF.