i remember an interview with junji ito in his studio and he practically lived in a closet. he had a bed surrounded by bookshelves and just in front of the bed his drawing desk and pc, he woke up, go to work, laid back and slept again. his whole apartment was the size of my bathroom, cramp as hell but kinda cozy in a way.
It would be more hellish in a dangerous third world city were people actually live cramped like that but they live in a guetto wereas a japanese person can just get up at 3 am and just go sit in a park and eat something outdoors for an hour and he will be safe and its all gonna be clean and fine. Someone in a favela living in a cramped space is just surrounded by violence and trash.
The other interview with junji ito was in a cat cafe were you can just go at any hour and pet any of the cats. It was very comfy, so sure, he lives cramped at home were he mostly does work stuff but he also has many ammenities like that in his city where he can just leave for a little if he feels burnout.
I am a city person but also lived in the country for a while and didn't like it, felt very agoraphobic, theres a lot of space but its empty and you just really see the same everyday. In a cramped city at least in my own neightborhood i can go to like 10 distinct places to eat or read a book or whatever where i would feel variation and stimulated enough to go back to my apartment and be alone