People around is great. People around in great density tends to breed problems instead. Your parent is probably thinking density. Like lots of 3 storey plus buildings with paper thin walls and ceilings. In dense urban development.
You can like people and community all you want but if that's all over the place you are gonna breed interpersonal issues. You have to be a very tolerant person to endure that.
And for the record, yes, not everyone likes non family people being that close. I am OK with my neighbors doing whatever they want if I can't hear their loud bass all afternoon and night time. But if it feels like their every weekend (or worse weeknight) is happening right in my bedroom then yeah I "can't stand people".