The single family home is what people want and are clearly willing to pay for them.  I have yet to see a miserable suburban neighbourhood.   All incremental capital costs should be included in development fees and operating costs should be included in property taxes.  
I would rather live in a suburban neighbourhood than in the human beehives of Toronto with their faux sophistication.   BTW, I am not alone as my neighbourhood is filling up with Toronto refugees who fled the city for greener pastures of suburbia.