How about commuting? Pollution? School, hospital and other public services capacity? Crime arising from simply the rich place being affordable, inviting undesirables?
Those come from the savings from not having to maintain as much less power grids, less roads to maintain, less roads to plow, less helicopter ambulance rides to pick up injured remote people. Sure you need more city busses now.
Giving the "undesirables" a decent place and means to live reduces crime.
Don't you think that in general, the drive to push as many people as possible into places as tight as possible, like high density urban areas, is abnormal? People by nature love to enjoy space, and this is what U.S. has in abundance.
Work on making geographic location less important, on decreasing the value of being in a particular place. Embrace remote work. It will solve the "housing crisis". Forcing millions of adults into dorms, won't.
Do you think dorms are less ugly than suburban sprawl or endless exapanse of ranches? I mean how many places in the US can you find a 5mi x 5mi square of land unmolested?
Depending on what you mean by "unmolested", a 5mi x 5mi square of land is really easy to get in most of the USA. (probably weeds, not pristine old-growth forest) It's pretty cheap, and there won't be any utility bills to pay. You can use it to graze cattle or something like that.
