What's wrong with terraced housing? It is more suitable for high-density developments than detached or semi-detached housing. A mixed development of houses and flats brings in a variety of different households and people. This makes a place much more attractive to live in than a place with only one type of dwelling. Well-planned terraced housing doesn't have to lead to sprawl.
In the UK, families with growing children have an aversion to flat living. It may be irrational, but this attitude hasn't changed in decades and is unlikely to change in the future.