Population can't grow for ever. We'll need to learn to live with a constant population (and even decreasing for some time) at some point in any case...
European governments do not want to face this reality and prefer to try to convince people that immigration is good (polls show that the people increasingly disagree).
Nope. "Urbanist advocates" can create real estate bubbles even with a shrinking population.
Case in point: Tokyo. You just need to make sure you _have_ to live in The City, and that there are no other options for you. And a shrinking population makes that _easier_.
European governments do not want to face this reality and prefer to try to convince people that immigration is good (polls show that the people increasingly disagree).