I’d definitely prefer that, personally, but I think that would be a tough sell in most of the US at this particular point in society. Especially when most construction of new homes isn’t really urban so people don’t feel the space confinement the way they would in a more urban setting (they just look past the row homes and go “well that field could be housing so I don’t want this”), and with the sprawling layout of suburbs, they would feel super out of place to the point where I bet NIMBY mentality would prevent it.
Perhaps if that was a more normal option here, but it’s pretty uncommon for now.