That is pretty much the whole north east and New England.
Knock down a house and put up a bigger one. Knock down a house and put up a multifamily if allowed.
What we need mostly here in southern NH is 50 and over housing. Smaller two bedroom houses/condos where you don’t have to mow the lawn or worry about snow in the winter.
Yes, that sort of housing is needed just about everywhere, and unfortunately almost no one is building it on an infill basis. You have to go to places like The Villages.
As you know there are hundreds of housing submarkets and conditions can simultaneously be different in different areas.