If you had stores and jobs within walking distance of your house you would not need a car. As a result you wouldn't find a car worth having. As a result you wouldn't need all the space dedicated to the car. Also as a result you would take public transportation.
It also hurts that our focus on not allowing change means that even when someone is willing to spend their own money to tear down a smaller house/apartment to replace it with something larger we won't allow it. Thus areas that "want" to grow denser cannot do that. The only option is to grow outwards. That means people need to be farther out, which implies more time in a car, which implies more roads and parking spaces, which in turn means less density is possible.
Note that the above is simplistic. I ignored many other factors. It is a complex problem and no one change can solve it.