Slowing down a metro area by, say, forcing a modal shift towards bicycles will not make conveniently located housing any cheaper. If anything, it'll be more desirable and therefore more expensive. Absent a change in housing spend, commute times will rise and free time will sink.
EDIT: I'll add that while I don't live far from work for a bigger yard, I do live far from work so I can have my own apartment, instead of roommates. Having lived both with roommates and without, I'm confident I really am happier this way.
[0] http://www.huffingtonpost.com/kirsten-dirksen/happiness-rese...