You can have dense apartments with your own bathroom.
I guess this is all a bit of a broken record but Tokyo has all the same potential problems as SF (Namely earthquakes), yet somehow has no housing shortage despite being denser. It's all a manmade issue.
Accepting this is acting as if there's no reasonable solution of just building normal apartments on more land. But of course that runs into social barriers.
Urban living means sense living. The best bet is to go for comfortable dense living.