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https://civilization.fandom.com/wiki/Housing_(Civ6)
Later in the game you can get things that can give you housing to compensate. Aquaducts give +2 housing but need to be adjacent to the city center and connect to fresh water. Sewers give +2 housing. Neiborhoods give +5 housing I believe.
Even if you have access to those buildings I still would suggest always settling next to fresh water.
When I say adjacent I mean that the city center MUST be right next to the water, having it within your borders does nothing.
A city's housing capacity acts like a soft cap on how large the population can grow. If you are at least 2 population below your housing capacity you receive full benefit from your growth (food) yields. When you are only 1 below your housing capacity you grow at only 50%, and once you hit your housing limit or go over you only grow at 25% speed. Once you hit 5 population over your housing limit you stop growing entirely.
Next to a River/Oasis = +3 Housing (5 Total)
Next to a Coast = +1 Housing (3 Total)
Next to zero of these = zero bonus and starts with just 2 Housing.
Placing an Aqueduct gives more but that can be confusing at first how much it gives, but it works like this:
If your city did not start next to a River or Coast but can build an Aqueduct to a River or Mountain it will simply be brought up to a total of 6 Housing.
A City Next to a Coast will also be brought up to 6.
The River is the winner, +2 so that's a total of 7 Housing.
I just build them if I can because I have OCD lol.
EDIT - If you build next to a Coast and River you wont get both, you will just get the River bonus. Obviously tho it's still better to do so because then you can also build a Watermill.