The builders will cram whatever they can build that a buyer is willing to buy. If those houses are sold, and are that crammed next to each other, which is something I hate, then good for the builders. I would rather live somewhere a bit farther with a bunch of personal space. My uncle lives in Canada, so I know what the OP was talking about, but there are just as many places that have open land housing. It's the dense, key cities where you notice this cramming of houses, which can also be found in U.S. cities.

My take on it is, if I can stretch my body, from fingers to toes, and I can touch my house and my neighbors at once, forget about it!