It sounds like people just want an air gapped apartment. The rest of the property isn’t important. They don’t do anything outside, so they don’t care about yard space or privacy.
That's a good way to put it. I see new construction around where I am and it looks horrid. At that point it may as well just be a row house or something. You are probably less than 4 ft away from the next structure, no yard, the house is almost exactly the footprint of the lot itself... etc...
Worse yet. Imagine a fire in the area? One house goes up, if the firefighters are not fast enough or the winds are too high the entire neighborhood is gone.
It sounds like everyone is building town houses; even outside of town. They probably make more money by splitting the land up into twice as many lots that barely fit one house each.