These 2 lines control the placement of the houses on each side of the street.
PlacePointsAlongLine|FTYPE="LINE" And highway="residential"|SINGLE|16;18|20;21|0|String;type|build1|hdg
PlacePointsAlongLine|FTYPE="LINE" And highway="residential"|SINGLE|16;18|-20;-21|0|String;type|build1|hdg
The value |16;18| sets the distance between houses to 16 to 18 metres. I was originally using 20;25 but found it was too sparse for cities, so give that go first then increase it until you get the desired density.
The value |20;21| and |-20;-21| sets the distance of the houses from the centre line of the street to 20 to 21 metres. Increase this for wider footpaths. There are a pair of lines for each street with one set being negative. You need to change both together or you well get houses closer to the street on one side.
Even with increased house spacing it look like you will need an include, to get rid of the houses in the background. Unfortunately OSM seems to consider any street with a house on it as residential, even though there might be just a couple.