My point is, for a city, every square foot of street has an operational cost, and on top of that infrastructure needs to be rebuilt every x years (I think around 20 ~ 25).
While the upfront cost of said infrastructure tends to come from subventions when building a new development, the city needs to cover the costs for both operations and rebuilding once it's needed.
Why does this matter? Well, detached single-family houses provide lower revenue per square foot of street than middle housing or mid-rises, eventually creating a hole in the city's pockets.