Yes if everybody should live in their own real estate. There are superbly working economies where this is not true for many decades for various reasons (ie Switzerland) and they do just fine and people are happy, just focus on more important matters in life.
There are many arguments against urban sprawl which is direct consequence of such approach.
Take your pick from other European countries. Asian countries have much, much higher population density than the US. Is their standard of living as high in many of those countries? No? Do they enjoy reserve currency status? No. Do they make it work anyways? Yes. Could we learn many useful ways of living and building and structuring our businesses, lives, and economy? Yes!
I'm tired of the snide dismissals that we Americans make to any comparison between our country and others. Oh, well, our country is special and exceptional, heterogeneous and large, so we have nothing to learn and cannot possibly change things here. Even if you arrogantly assume America is the best at everything and leads the world in so many ways, much can still be learned from the way others live their lives and structure their homes, businesses, and societies. You can compare apples to oranges. They're both fruit! Biologists compare species all the time to learn more about the species and to better ourselves with that knowledge. We can learn about and from other countries and peoples while disclaiming some of the differences. At the very least we can acknowledge that it works elsewhere and that what they do could be done here in at least a limited fashion or successful manner. Even if we're red apple fruits and they're bloody oranges, they're both fruit and both countries.
There are many arguments against urban sprawl which is direct consequence of such approach.