Switzerland seems to have kind of the perfect blend of a solution (apart from the lack of space in general): it is _very_ car centric, almost everyone has a car, like in the US. On the other hand, to commute to work from their little sleeping villages they use the excellent train network which makes it possible to do the daily commute faster than by car. And many people use their ebikes, if for nothing else, just to get to the train station...
Despite all this, property prices in Zürich (city), for example are sky-rocketing (much more than in the neighbouring villages), and for any available rental flat the viewing queue is usually longer than you can count. How is that possible, if nobody wants to live in a city?... Some people might appreciate a 15 minute walk to their workplace, or a shop open after midnight on the next street, or just the buzzing life of a city in general.