The fact that you can build 200 condos on the same acre as 1 ranch house does not negate the fact that most people would choose the ranchouse over the condo if presented a choice between the two.
It is numbers game. Its not about what any single wants best, but how many times you can sell people their 2nd choice using the same land.
While I would much rather have a nice downtown condo in a major city over a ranch house in the sticks. I would rather have the ranch house in the sticks than a condo in the same location as that ranch house.
Some dream of living in a condo in the city, some of a rural ranch house. I don't think anybody dreams of a rural condo.
It is numbers game. Its not about what any single wants best, but how many times you can sell people their 2nd choice using the same land.