That doesn't decrease human demand. It will change the price point though. It might make it cheaper and encourage less debt, which is a good thing. But if there

That doesn't decrease human demand. It will change the price point though. It might make it cheaper and encourage less debt, which is a good thing. But if there is a town with 4 houses and 5 families, then the price of a house could be $100 or $1bn, but there are still 4 houses, and 5 families. Building smaller homes is good. If you make the small, and put them close together, and sometimes on top of each other you can increase the chance of having a walkable city rather than a drive-only one.