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If you have to make apartments shoebox sized so people can afford it, that's not a sign that it's affordable. Also, there is normal sized housing in suburbs / rural areas there. It's like they will choose to live like humans given the chance, and not sardines in a can.
Would you rather have a shoe box or hundreds of homeless people in every city?
Besides, no one is saying they HAVE to be small here. Japan has a much, much higher density to support.
That's a false dichotomy. I want affordable housing everywhere. How about that?
Texas is around 700000 sq km with 30 million people, whereas Japan is 400000 sq km with 125 million people. The demands for space are very different between the two places and their respective urban areas. Costs are always higher in dense cities, but the links up above seem to suggest that they haven't ballooned as much in Japan. Space constraints of urban regions will also obviously lead to less space per person, for those who want to live there. With finite space, you have to compromise on size or on cost. I think the poster above is simply stating that fact with the "homeless or small space" dichotomy, though I think that is maybe a bit hyperbolic.