But in a level playing field market place you’d see less of a price differential, and urbanism would be both more common and more “normal,” though still a bit of a minority taste.
Or I guess the question is more "how true?" And, no, country mice, this isn't about you. Enjoy the great outdoors! But at some point given various policy choices a tipping point was hit. Auto-centric development necessitated even more auto-centric development, to the point where there were no other considerations. I don't think reversing it is easy, and I don't think everybody wants to live in Manhattan or even South Philly, but inner ring suburbs exist in which walkability and the automobile manage to coexist fairly well. In fact, they're also quite pricey in some metro areas reflecting their popularity. Anyway, the point is, it isn't just illegal to build Manhattan anywhere (even in Manhattan), and illegal to build South Philly anywhere (even in South Philly), it's also illegal to build at the design and density of older suburbs just about everywhere.