As they should! If you want to make inefficient use of scarce land, you should have to pay more to do so.

So much for the American Dream, right? Let's dive headlong back into the communal longhouse that is the European continent, where only the wealthy deserve backyards.

The "American Dream" was coined when the population of the US was less than half what it is today, and when significantly more of the population was perfectly happy to live in small towns rather than in dense cities. The US changed; the dream needs to change, too.

We also came out of a World War mostly untouched (infrastructure) and victorious.

I don't think "deserve" is an accurate representation of the situation. People with more money will have more means to increase their luxury. That's been the case as long as we've had money.

Regardless, you're presenting a false dichotomy. There are many great alternatives to single-family homes that need not be communal longhouses.

And if you want a good-sized plot of land, maybe don't move to an urban environment. You can't have everything.

All the new developments I’ve seen lately in CA are massive boxes with essentially zero yard. So it’s already like that.