There are cabins in The Towns, too. There are even small shed-based towns-within-the-town, allotment gardens ("community gardens" to some). I honestly can not say why not towns are entirely like this. The houses in the allotment gardens are small, but snug and beautiful. And they're sold and bought at fixed prices, to avoid speculation. There's no place for cars. The individual gardens range from being impressive to being "interesting". There is some peer pressure to keep things tidy, for sure, but this way everybody gets exercise in conflict solving. If just part of one generation lets that conflict solving muscle atrophy all hell breaks loose, but maybe that's already happened.
You're not supposed to live like this year round. There are many reasons for this, several of them concerning how to keep people like me from settling down permanently.