In earlier times, even with a soaring population, Americans knew how to accommodate housing demand. In the eighteenth and nineteenth centuries we built cities from scratch along the frontier. The existing major urban centers—Boston, New York, Baltimore, Philadelphia—all expanded rapidly, both by density and expansion into land on the periphery.
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No. We do not need more cities. All that does is spread blight and poverty, and forces a lifestyle on us that chose to move away from populated areas. It's the equivalent of opening up Section 8 housing in an affluent neighborhood.