Why should everyone live the same way? I know tons of people who prefer city life, and more still who frankly don't really think about it either way.
Surely we all operate this way? My mate goes fishing, if everyone went fishing it doesn't work, but we don't all go fishing.
If we have 54 million square kilometers of habitable land that is not used for agriculture, and we scatter 8 billion people across it, then we end up with a population density of about 148 people per square kilometer -- which is approximately what Florida is today.
But the claim was about the unavailability of space, not of man-made infrastructure.
Diversity is generally good. It's nice to have some options available.
(Even with universal teleporters, diversity is generally good.)