My point is, for a city, every square foot of street has an operational cost, and on top of that infrastructure needs to be rebuilt every x years (I think around 20 ~ 25).
While building said infrastructure tends to come from subventions when building a new development, the city needs to cover the costs for both operations and rebuilding once it's needed.

Why does this matter? Well, detached single-family houses provide lower revenue per square foot of street than middle housing or mid-rises, so eventually creating a hole in the city's pockets.

I'm not explaining it very well, but I'll suggest taking a look at this:
https://www.strongtowns.org/journal/2023/6/21/whats-the-sweet-spot-for-building-housing-inexpensively
Climate Town - The suburbs are bleeding America Dry