I hope people aren't confusing more density as having less space. Although I could see how people might initially make that assumption. Density is a good thing.
You theoretically could have a 10-storey building with a 10,000 square foot podium floorplate; the podium level exists for a coffee shop / market and other essential services and retail, while the remaining nine floors, each with a 3,000 - 4,000 square foot floorplate, are individual residential units for enough space to each accommodate one family (2 adults, 2 children) very comfortably. Put a garden / leisure area on the rooftop, and you're good to go.
The end result is a building that occupies only 10,000 SF in area, but houses nine families and essential retail. You can have your space building up, too. Of course, the economic feasibility of such a property would have to be discussed on a level that incorporates a massive shift in municipal urban development ideologies; this is for a separate discussion.
The point is to have people understand that density isn't necessarily bad; you can, indeed, have your desired space in higher density environments. Suburbs and SFH's aren't the only way to live comfortably with space. Smart density is just efficient planning.
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