Also, Tolkien’s elves were very much city dwellers during the First and Second Ages.
And they did not have pointy ears. Yet here we are, elves being tree loving, long haired, pointy eared, long living, tall, arrogant magic users with keen senses and high skills. That's the image someone gets, if you blandly tell them, your fantasy story will have elves.
Them being regular city dwellers like boring old humans breaks with the stereotype. And it breaks with the source material used for creating elves. It is humans that live in cities. All the non humans, the mythical creatures live elsewhere. Usually in the woods or mystical lands. Some underground. Swamps or even the sea. But not regular cities.
Sure, you can create a world, where humans, orks, elves, dwarves, goblins, halfings, lizards, fishpeople and whatnot all live in overground cities made of brick houses. But it kinda defeats the purpose a bit, of having all these different creatures in a setting. So instead you have dwarves building underground, elves growing treehouses, fishpeople carving corrals, halfings dig burrows and whatever gobos do.
(Interestingly enough, Tolkien's elves and humans were the same species. Elves just got the fate of living long and becoming graceful over time in a simplified explanation. So in ancient times Tolkien's humans and elves would do probably all the same things, like building cities.)