Urbanization makes cities overwhelmed by people so the number of those who live in the small space or without outdoor areas increases. I think it is a positive development due to space optimisation and creation public areas for outdoor activities.
First of all, the majority of people in cities do not really need a lot of space in their homes. It can be shown by the tendency of minimalistic approach that means get rid of every unnecessary item. This trend is about trying to have the most optimal lifestyle to decrease stuff and rent expenses in order to redirect this money to traveling and getting more impressions.
Secondly, decreasing private outdoor areas forces governments to create public areas like parks and sport facilities. Lack of outdoor space contextually made public spaces fancier. Modern apartment houses have a lot of installations like tennis and basketball courts, suitable for fitness equipment and so on. All this stuff is affordable for a large amount of people while making it in your own yard is not.
To sum up, decreasing home space with a growing city’s population is a positive change. It is not only encourage people reevaluate their priorities and make society less materialistic, but also contextually improves urbanistic standards by requiring of public facilities.