That's all only a problem when supply of housing is constricted, which it has been for generations in all urban spaces. Otherwise it's just wealth generation. It's also a problem when economic activity is limited to a handful of key urban spaces, but that isn't true. There are plenty of places to go make a good living. There just isn't anywhere to live.

There should be plenty of different levels of density for people to choose to live in as everyone has different preferences. What's not sustainable in any way is exclusive single family zoning. If, as so many backers of exclusionary zoning claim, people only want to live in SFH, why would we need a law to force that to be the only built form? Surely every single unit built of any other type would fail to find a resident.