Short answer.
The population density of Night City can be attained and has been exceeded in smaller communities.
Long Answer in Four Parts.
Part One: How to achieve high population density in relative comfort for the population.
The acre is a unit of land area used in the imperial and US customary systems. It is traditionally defined as the area of one chain by one furlong (66 by 660 feet), which is exactly equal to 10 square chains, 1⁄640 of a square mile, 4,840 square yards, or 43,560 square feet, and approximately 4,047 m2, or about 40% of a hectare. Based upon the International yard and pound agreement of 1959, an acre may be declared as exactly 4,046.8564224 square metres. The acre was sometimes abbreviated ac,1 but was often spelled out as the word "acre".2
https://en.wikipedia.org/wiki/Acre
So an acre is about 208.71032 feet by 208.71032 feet, or about 63.616 meters by 63.616 meters.
I think that the lot where my family lived for some years was about half an acre in size, which would have been about 208.71032 feet by 104.35516 feet, or about 63.616 meters by 31.808 meters.
I believe that the house there was about 30 feet wide by about 40 feet long, and thus with about 1,200 square feet (111.48 square meters) per story or floor. It had three floors and a basement, so it had a total of about 4,800 feet on four levels. Assuming that each level was about 10 to 14 feet (3.048 to 4.26 meters) tall, the house was about 40 to 56 feet (12.19 to 17.06 meters) tall from the basement floor to the roof.
Imagine a building with such lots and houses stacked one above the other. Each lot could have girders (perhaps disquised as trees) about 40 to 56 feet (12.19 to 17.06 meters) tall spaced around spaced around the perimiter to hold of the ceiling and the floor above. And each building could have girders about 40 to 56 feet (12.19 to 17.06 meters) tall supporting its walls and floors and supporting the girders in the next level above it that support the next house above it.
So if that building containing those lots and houses was 40 levels high, 1,600 to 2,240 feet (487.68 to 682.75 meters) tall, and was one mile square (2.58998811 square kilometers), it would have room for 1,280 house and lots on each floor, so it would have room for a total of 51,200 houses and lots. With about 2 to 10 people living in an average house, there would be 102,400 to 512,000 persons per square mile or 39,536.8 to 197,684.3 persons per square kilometer.
Now imagine that the lots contain one story houses. The medium size of single family homes in the USA is about 1,600 or 1,650 square feet (148.645 or 153.29 square meters), considered to be the largest in the world. A single story house of such square footage could be 40 to 40.62 feet (12.19 to 12.38 meters) on each side if square, 28.28 by 56.568 feet (8.619 by 17.24 meters) to 28.72 by 57.44 feet (8.75 by 17.5 meters) if twice as long as wide, etc.
Such as house could easily fit in a half acre lot (about 208.71032 feet by 104.35516 feet, or about 63.616 meters by 31.808 meters) or a quarter acre lot (about 104.35516 feet by 104.35516 feet, or about 31.808 meters by 31.808 meters).
If a building contained 100 levels of single floor houses on quarter acre lots one above the other, and was a mile square, it could contain 2,560 houses and lots per level, and thus a total of 256,000 houses. So with two to ten people living in the average house, it could have 512,000 to 2,560,000 persons per square mile (197,684.3 to 988,421.5 per square kilometer) of ground it occupied. With 15 to 20 feet (4.57 to 6.09 meters) per level the building would be 1,500 to 2,000 feet (457.2 to 609.6 meters) tall.
Naturally there woould have to be streets between lots for pedestrians, bikes, electric cars, trucks, emergency vehicles, etc. And presumably each floor would have shopping centers and other public buldings, so that people wouldn't have to travel up or down too many floors for routine activities. So the actual number of people living in the building might be only a half or a quarter of what it would be if the building only contained houses and lots.
So such buildings might contain only 25,600 to 1,280,000 persons per square mile of ground space they occupied (9,884.2 to 494,210.75 persons per square kilometer).
Each person might have 202.342 to 4,046.862 square meters of space in the building.
There are various other problems with such vertical city-in-a-bulding concepts, but if they are solved people could live like small town or suburban Americans in buildings with high population densities.
...and Night City in the game has almost 7 million people and an area of just 75 km2.
That gives a population density of 93,333.333 persons per square kilometer. Which seems to be about the midpoint in the range (9,884.2 to 494,210.75 persons per square kilometer) of the population density of my hypothetical giant buildings designed to enable the inhabitants to live similar to suburban or small town Americans. And of course it is not a requirement that the people in Night City live lives that good. They can live in much more crowded squallor.
Part two: Night City vs real cities.
...and Night City in the game has almost 7 million people and an area of just 75 km2.
That gives a population density of 93,333.333 persons per square kilometer.
At the present time the major city with the highest density is Manila, the Philippines, with 41,515 persons per square kilometer, 0.4448 the density of Night City. And probably only a minority of the people in Manila live in 40 to 100 level high rise buildings.
https://en.wikipedia.org/wiki/List_of_cities_proper_by_population_density
Part Three: Night City vs real city districts.
There are eight city districts around the world with populations between 101,693 per square kilometer and 177,038 per square kilometer, significantly higher than Night City.
https://en.wikipedia.org/wiki/List_of_city_districts_by_population_density
So an entire city that had the same population density as those districts would have a higher population density than Night city.
Part Four: Night City vs the Kowloon Walled City.
The legendary Kowloon Walled City in Hong Kong was a small area which achieved a very high population density in multistory apartment buildings.
By 1990, the walled city contained 50,000 residents1 within its 2.6-hectare (6.4-acre) borders.
https://en.wikipedia.org/wiki/Kowloon_Walled_City
the city also underwent massive construction during the 1960s, with developers building new modular structures above older ones. The city became extremely densely populated and "a world unto its own," an enclave,[14] with over 33,000 people in 300 buildings occupying little more than 7 acres (2.8 ha).
https://en.wikipedia.org/wiki/Kowloon_Walled_City#Urban_settlement
The first statement gives a populartion density of 1,923,076.9 per sqaure kilometer, the second gives a population density of 1,178,571.4 per square kilometer.
A thorough government survey in 1987 gave a clearer picture: an estimated 33,000 people resided within the walled city. Based on this survey, the walled city had a population density of approximately 1,255,000 inhabitants per square kilometre (3,250,000/sq mi) in 1987,[20] making it the most densely populated spot in the world.[55]
So the small area of the Kowloon Walled City had a population density 13.446 times that of Night City. If an entire city of 7,000,000 people could achieve the population density of the Kowloon Walled City, it would need an area of only about 5.577 square kilometers.
https://en.wikipedia.org/wiki/Kowloon_Walled_City#Demography
. As a result, the city reached its maximum size by the late 1970s and early 1980s; a height restriction of 13 to 14 storeys had been imposed on the city due to the flight path of planes heading toward Kai Tak Airport.[15]
https://en.wikipedia.org/wiki/Kowloon_Walled_City#Urban_settlement
The walled city was located in what became known as the Kowloon City area of Kowloon. In spite of its transformation from a fort into an urban enclave, the walled city retained the same basic layout. The original fort was built on a slope[44] and consisted of a 2.6-hectare (6.4-acre) plot measuring about 210 by 120 metres (690 by 390 ft).
https://en.wikipedia.org/wiki/Kowloon_Walled_City#Layout_and_architecture
Ignoring the narrow allys and courtyards, one can think of the Kowloon Walled city as a single building covering about 210 by 120 meters and 13 or 14 stories tall.
So the total floor space would be about 327,600 to 352,800 square meters.
That would give a total of about 6.552 to 10.69 square meters per inhabitant.
Conclusion: It is possible for a community to reach and exceed the population density of Night City. How desirable or not that would be would depend on the design of the city.