Except regulations are what got us here in the first place? At least in the US, zoning is a recent invention with racial motivations. Cities want to be dense because that is the cheapest way to build. That is why basically every city older than a 100 years old that hasn't been wrecked by zoning is dense. Suburbs are an unnatural product of abundant land in the US, the invention of automobiles, and zoning.
Immigrants still do this. Except now they fill apartments and houses with bunkbeds. I know because my dad did this in the early 2000's and is still in contact with the local immigrant community.
It's very team/org dependent and I would say that's generally not the case. In 6 years I have only had 1 team out of 3 where that was true. The other two teams I was expected to juggle feature work with oncall work. Same for most teams I interacted with.