> Thing is, they do it because they can.
Our parents did, maybe, but we're doing it because we have to.
Inner cities went from unlivable crime dens to highly gentrified in the span of about a few decades. The moment the crime went away, people moved back in. But most of the people who actually show up to town council meetings are the people who grew up seeing riots in LA and graffiti-covered NYC subway cars. So building any more of the now highly valuable high-density, mixed-use neighborhoods that inner cities have is a drawn out political fight with people who think making their neighborhood more valuable will ruin it.
And this situation also applied before the last major urban crime wave too. The low-density suburban neighborhoods that are also expensive now used to actually be affordable. You could build cheap housing on low-value land at the outskirts of town and sell it for a huge profit, to people who had extremely generous government loans[0]. This is what triggered the white flight[1] that started the inner city crime wave[2] that Americans now cite as why density is always bad.
Problem is, that's unsustainable, there's only so much land that can be near a valuable set of jobs. So now you have cities where both the high-density core and the suburbs are equally as unaffordable. The next rung on the latter would be to move to smaller cities, except then COVID happened, and suddenly the housing market was flooded with people moving out of San Francisco at the same time rich Chinese people were buying up houses to hide their money from the CCP, themselves in competition with hedge funds like BlackRock that want to buy up entire neighborhoods and rent them back to the people who lived there.
America's obsession with single-family home ownership is an unsustainable system, propped up by deliberate market distortions. We don't buy into it because we're so much richer than anyone else, we buy it because the system is built to make it the only option for most people.
[0] To be clear, nobody would loan you money for 30 years, on a fixed interest rate, and let you pay it back early otherwise. The amount of risk shouldered by the bank is insane, but for the fact that the US government pumps money into banks to make this kind of financing viable to offer.
[1] The peak of suburbanization happened before desegregation.
[2] Don't forget leaded gasoline! Once racial minorities were trapped in cities, we made their kids breathe shittons of lead fumes, creating fuel for the crime wave fire.