Yeah, there are multiple issues that would need to be fixed.

• Land value tax would offer a financial incentive not to waste space
• Mandatory parking space laws currently force businesses to surround themselves with massive parking spots, so removing these laws would allow for more compact building
• Zoning laws currently often prohibit mixed usage, thus making it impossible to have e.g. accommodation, shops and workplaces in walkable distances
• The spread-out way of building stuff then causes public transport to become unviable, which in turn makes the car basically mandatory. This is a bit of a chicken-egg-problem since fixing it would require people to move into denser accommodation.