I've spent kind of a lot of time talking directly to homeowners, and while I agree a general fear of change is one of the first principal components of this problem, housing price loss aversion is definitely a real thing.
I don't care much about price loss if it is happening everywhere, so if I ever want to move to another region selling my house here will pay for one there.
> fear of change is one of the first principal components of this problem
By describing it a "fear of change" you are assuming (I think) that the change is always good for everyone, people just "fear it" irrationally.
The reality is that most people choose where to buy a house based on some criteria of what they like and the lifestyle they want. Whatever it may be for them, but nearly everyone puts a huge amount of effort in considering what they want from a neighborhood and then try to find a matching location to buy a house.
If you come in and completely change the nature of the neighborhood, in a way that makes it incompatible with why they chose it, of course they'll hate it. You would too if it happens to you. Every human would, basic human nature.
It depends on what that factor is - cities change and the density, views, etc are not frozen for you at the time of your purchase. It's hard to understand why someone would think otherwise. There are plenty of planned communities, HOAs, etc that are much more likely to go unchanged that would seem to be a better fit for people like this.
> It's hard to understand why someone would think otherwise.
Think, or feel? Rationally, most people might realize that over the decades places will change.
Emotionally, if you put it a huge amount of effort and more money than you've ever spent (or ever will) on anything else and then someone comes in and changes everything about it that you originally loved, you will hate it. Basic undeniable human nature.
Most people don't like loss ( | || || |_ ) but rarely is it really a case of potential loss (unless "density increase" is code for "build a maximum security prison next door") - it's just a case of slower appreciation.