I think we are on our way there, most new developments around here have houses that are nearly the size of the lot, with a tiny back yard and smaller front yard, and little room between houses. Developers get more money by making lots small and houses big, so there’s little incentive to have the large suburban d yards that wises to be common.
Of course, the houses are much larger than their Japanese counterparts. My Japanese mother in law thinks we are wealthy based on the size of our house, but we’re one of the smallest homes in the neighborhood,