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People can own apartments.
Given the population density, maybe standard suburban homes aren't really the thing. Affordable apartments maybe? People have to live somewhere, but not everyone needs a 1/4 acre with a garage and a garden. It would be nice, but at some point there's just not fucking room. And if there were room, there isn't enough water to build out like that much more. >

People need to own, not rent.  It's the basis of generational wealth.