Sprawl can be the result of deregulation in a ex-urban, suburban context, but not in an urban context, as the urban areas are already fully built out, so furthe

Sprawl can be the result of deregulation in a ex-urban, suburban context, but not in an urban context, as the urban areas are already fully built out, so further sprawl in an urban centre is not possible. Deregulation in an urban context enables redevelopment and denser housing. Additionally more housing options that result from a deregulation in urban spaces is thought to weaken the profit motive for further development in deregulated suburban environments, and thus limit sprawl. Whether this is true I'm less sure, though laying it out as an explanation because it's at least part of the typical environmentalist and urbanist argument for deregulation in urban areas.