Isn't America the land of the free? Free market, land of opportunity, options galore?
Just remove enforced single family zoning for 70%+ of your built up areas and let the free market decide, right?
In most of the US right now you can decide to:
1. live in a single family home
2. live in a single family home
3. live in a single family home
...
98. live in a single family home
99. rent/buy a condo (if there are any in the area and you can afford it, because those areas are super expensive)
100. rent/buy a townhouse (if there are any in the area and you can afford it, because those areas are super expensive)