That’s not really true though, most people are much happier in a house and have far fewer sources of stress in their life. Also high density housing is an awfull place to bring up kids, that’s the exact reason London is knocking down all the old tower blocks like elephant and castle, all the studies showed it was a horrible place to live for everyone there.
I know you want this solution to work because no one likes American suburbia but it doesn’t have to be a choice between two types of hell, there are actually good options like European suburbs with local shops, bus and cycle routes to pedestrianised shopping areas and lots of green spaces.