Another factor is that people are living separately from their extended families and change what type of building they live in at different points in their lives, for example:
Single adult - rented flat or small house.
Couple - rented larger flat, bought small house.
Couple with kids - trying not to rent, buying larger house
Couple with adult children - no longer need the space, buy smaller house
People also like to have gardens and pets, which is easier in a house than a flat. Ownership is also a factor, owning a flat doesn't make much sense when you have to pay ground rent and a mortgage.
One reason is that people want houses and it's not sustainable. Large cities need to go up and living in apartment in a high rise should be a norm.
The problem in the word itself even - housing.
Another factor is that people are living separately from their extended families and change what type of building they live in at different points in their lives, for example:
People also like to have gardens and pets, which is easier in a house than a flat. Ownership is also a factor, owning a flat doesn't make much sense when you have to pay ground rent and a mortgage.