You show me a single home owner who's enthusiastic about having a large multi-unit built next door .. I wouldn't be happy personally.
If you think capital has all the power look at TC energy's keystone pipeline. Look at LNG facility approval in Canada. No shortage of capital there but those projects are dead.
If there's demand for something (housing) markets will solve that problem you just get out of the way and let them. Capitalists would love to sell the same acre of developed realeatate to more than one person. Remember - they're greedy.