The US doesn't have a free market in housing. There's lots of stupid zoning and covenants.
Yes, some people like suburban sprawl and buy it, but the alternatives are pretty much illegal in most places. See eg http://cityobservatory.org/my_illegal_neighborhood/ (The neighourhood featured there is still too sprawly for my tastes, but already illegally dense.)
Yes, some people like suburban sprawl and buy it, but the alternatives are pretty much illegal in most places. See eg http://cityobservatory.org/my_illegal_neighborhood/ (The neighourhood featured there is still too sprawly for my tastes, but already illegally dense.)