We based parking requirements on absolute peak demand - so that even on Black Friday, everyone, by law, gets a parking space. Developers were forced to buy more land, and provide worst-case scenario parking, for free, in order to build. With more than ample parking everywhere, more people choose to drive for trips. Traffic engineers note the roads are getting congested, and design larger, wider roads to provide capacity.
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There are a lot of problems with our current approach to residential development. For something in such perpetual demand, it's amazing that the market has not been able to figure out a good way to supply it. We need quality housing in large quantities. Note, that adjective: quality. As we saw in 2006, housing built with no attention to quality or sustainability of place is not truly in demand; it created a valueless bubble that then collapsed.
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