That's my thoughts exactly, and my anecdotal research suggests that a 1br house or duplex with a backyard and garden might fulfill some unmet demand in particular.
Sigh, now to find a block that supports a "proof of concept" duplex development...
I've had in my a head a bit of an "out-there" idea for a starting development in WA. Basically the short of it is to find a low-density lot and use the zoning concessions to subdivide and build 2 single bedroom dwellings in a duplex. So each house would have its own yard and street frontage...