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Why American Suburbs are so Creepy (liminal spaces)
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If people didn't want cheap cookie cutter suburbs they would spend more for something else. But they don't.
Its the same as when everyone complains about how airlines used to have good food, lots of leg room, attractive staff. The someone goes out and goes that and business fails because no one wants to pay extra and instead they want the cheapest thing possible.
The laws certainly don't help and the finances are broken, which isn't a failure if capitalism its a failure of politics.
Yeah, it's the best they can afford. Like Campbell's soup. If they had more money the homes would be larger and more unique. But that wouldn't change suburban sprawl at all.
Suburban sprawl exists because people do not want to live that close to others. It doesn't matter how nice you make apartments when a large percentage of the population are introverts and will pay as much as they can afford to have space.
The problem isn't politics or laws. The problem is people.