It's like the American opposition to pedestrianization of blocks. Pedestrianized blocks increase local business footfall and increase high margin economic activity.
New developments in your community increase value of your home, far better than restricting development.
The value of your home doesn't only depend on the fact that it's in a rich neighborhood with beautiful lawns, but the services and proximity to said services.
NYC is desireable, not because it's a big city... but because you can get services there. Take away the services - you take away all of the value proposition.