If this was true, then living in a city would cost about the same as living in a suburb. (Or even less, since city dwellers require fewer resources, as mentioned above.) As it stands, living in a city is significantly more expensive, and yet many people do it. Job growth has been focused on cities for a while now, and that trend does not seem like it is changing.
Conflation of "resources" with supply-and-demand. Living near the ocean doesn't use more resources but it's priced higher more because people want to live there bidding up prices. Similarly living in cities cost more because people want to live there (in aggregate).
