You have the cause backward. Induced demand is the observation that because people cannot get someplace they already want to go they are going something else instead.

The whole point of a city is all the things you can do. If you don't want to go someplace then what are you doing in a city - there are plenty of nice cheap places to live in very rural areas where you can sit in your house going nowhere. Thus cities need to build infrastructure to such that there is no induced demand and the people there can do what they want.

Note that I didn't specify what they build. Most cities should be building metro systems not roads.