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Municipalities set the parking requirements. In townhouse zones, that typically means 2 cars within a strata lot. So, the developer will build a tandem garage that's long enough to accommodate two cars. The driveway is usually an afterthought and only constructed as part of some mandatory setback from the common driveway.
Sure, it's developer 'greed'. They build to the minimum or design the property with marketability in mind. I haven't seen many sales brochures with long driveways to accommodate a full-size pickup with a hitch as a feature. Most customers don't care enough to demand long driveways, at least not yet.
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