[baursak]

It should be relatively cheaper in places with lots of mid-to-high rise development. For example, Berlin is relatively cheap as I understand it. London is expensive, but if you randomly click around it on Google StreetView, you'll see there's way more 1-2 story townhouses there than 5-10 story residential buildings.

[fnl]

Berlin has become a lot more expensive recently, the cheap housing there is mostly historical now. And, income in Europe is much lower on average than in the US (except London, most parts of Switzerland, and such places), so you first have to correct for that, too.

Yes, high rises make housing cheaper, but that comes at a price: Hearing what the neighbors around you are doing and often even saying (or their TVs/music/...!) at all times, not having some "green space" or yard of your own (and in most cases not even a shared green space), having to come to terms with all co-owners when you want to change something outside your flat. Etc.

For the price you (don't) pay, the European model sucks. (Disclaimer: I'm European... :-))