[imtringued]

You're assuming that every city refuses to build housing. That is true in California but not in the US as a whole.

[8note]

the economics are there for every city.

Who's going to let housing be built if it devalues the houses they own?

[novok]

When their property taxes go up a large amount too.

Prop 13 in California is a key thing cited as why NIMBYism is stronger than usual, because current entrenched residents don't feel the pain of their behavior.

Gov'ts also do not willingly pass something like prop 13 themselves, because they don't like to limit their ability to tax.