1. If you change the laws to simply allow more density and mixed use, things will start changing soon. Especially in high-cost cities. Governments don't need to invest any money here, just time.
2. People tend to underestimate how far you can easily go on a bike. The house I grew up in on the outskirts of a rural town is 5 miles from the supermarket, which sounds far but should take only about 20 minutes.