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So I'm thinking it's an overlooked strategy.
I did the same mistake with my first city. If I had the money, I immediately increased the city and assigned new zones.
This worked well until the simulation speed went down.
If you still have the money, you are increasing the size of your city exponentially in terms of real ingame/simulation time. Just observe the time ticker on the left side. If it goes quick with 3x, you are in the green zone. If one minute in-game takes maybe 10 seconds or even more... you will ran into a lot of problems.
Why:
To get realistic demand for higher density, your people and businesses have to level up. This takes a lot of in-game time.
In my case, if I have >60K citizens, the simulation speed is very very low. It would take >10 hours in real play time to bring citizens to the next level.
Solution:
Play CS2 accordingly to your machine/performance. I can enjoy CS2 is I play it as a village and landscape builder. With 20K population, the game is still fast enough, so I can level up my citizens. Now, I get a somewhat realistic demand for high-density buildings. Additionally, sometimes I let the game run for an hour and do nothing.
As long as the performance does not scale, I have to adjust my game-style and wait for future patches.
Sadly, the base game does not come with a lot of decorations. Fences, benches, stones, trash cans, street lights... everything is missing. Trees and bushes are the only things we have right now.
mine too i didn't build new houses since 170k and now at 200k