If you want to see the non-theme park France feel free to ask, I can give you the address of my favourite kebab in a 70's style banlieue dortoir, you'll love it.
Often the population is not growing, it just wastes a lot more space, and does it in a relatively ugly way. As the condition of the historical village degrades, it also becomes ugly. At my place, the population keeps decreasing, it is down to only one fifth of what it once was, and yet the spread accelerates.
For foreigners: just fool around Google Maps and StreetView, to have a look at the spread around many village kernels, and at the village entrances.
A random starting point (one in many thousands): https://www.google.fr/maps/@43.4947119,0.923205,1184m/data=!...
Look at the spread (as more or less organised areas, but also along roads). Then try to find the historical village limits, see how small it was compared to now. Well, the number of inhabitants was about the same as now.
Whomever is financing the Cato institute is completely irrelevant to the argument made.
Had I not cited the source, would you have actually considered the point?
In that context, such a law makes complete sense, I guess.