Sure they do. For example, there's the problem of suburbs. A suburb requires more roads, more buses, more plumbing, more electrical, more broadband, more land, more water use, and more energy per person than a medium or high density neighbourhood, like brownstones or terrace houses. Water is wasted on lawns and energy is spent on heating and cooling because isolated buildings have more places to leech heat. And that's in addition to all the problems of simply taking up more space. Suburbs cost the taxpayer more money, and they're also bad for small businesses, because people in cars are less likely to spend money at independent grocery stores, cafes, thrift shops, and etc. They visit big box stores and franchises, which leech money out of the community. Everything about the economics of suburbs is a disaster.

So why does America have suburbs? Because Americans are racist. When segregation ended, they wanted a way to avoid living next to black people. And pricing them out of living in these expensive suburbs was a great way to do segregation without technically doing segregation.