> housing for the people working at the bodegas is needed
Building more housing solves this problem. NYC is not even close to "very high density". I suggest you visit China - even the US's densest cities still have a 10x factor to go before they reach practical limits on density. We need more high rises and less height restrictions.
> Rent control and other "limited" things basically make company housing with a middle-man added.
No, rent control creates a black market for housing and destroys the quality of housing stock available on the market. If you live in the Bay or NYC and rent this is very obvious. It's very common to slip some extra $ or have a shittily maintained unit if it's rent controlled. I have rented units with mouse infestations, splinters in floorboards, and black mold growing out of pipes in the floor, none of which were fixed.
[1] https://www.minnpost.com/cityscape/2022/03/in-first-months-s...
High density is a terrible way to live. I thought we learned from the pandemic that high density living is unsanitary and promotes the proliferation of disease, and that a 600 square foot box is a really depressing place to be when you're stuck inside working from home.
The solution that the current generation loves to hate is to go back to a more suburban lifestyle. But it's possible to do suburbia without making it completely car-dependent. Look at planned cities like Portland, OR, where they have a lot of mixed use development paired with good public transportation and bicycle infrastructure well into the more suburban parts of the city. In a country like the United States where we have vast expanses of land, it makes a lot more sense to spread out than develop vertically.
But more importantly, all towns and most cities were at "suburban" densities years ago (check the "old towns" of most towns, etc) - the key was "travel to services" was limited by walking or sometimes subways, etc.
If instead of one Walmart every 30 miles you have smaller stores every 2-5 miles, suddenly density isn't as mandatory for livable cities.
Mixed usage and transit backbones are the key - you could design "pods" that are about two miles in diameter centered on train stations that would be entirely walkable/bikable - then you can even have the massive city centers.
People having cars isn't a problem if they don't use them for commuting, and some small changes in city design can lead to that.
As for cultural reasons behind preferring apartments, everyone has various reasons. I doubt you'll find consensus among those that dislike SFH development over what it is they dislike, but they're unified as a bloc in their desire for density.
But - in areas where there is already very high density, you need transportation that lets people live cheaper but still get to work. You don't need to worry about housing a bank VP in New York; but housing for the people working at the bodegas is needed.
Rent control and other "limited" things basically make company housing with a middle-man added.