Opposition to development hurts the homeowners value, a lot.
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.
In my area, we have everything around us (big retailers, malls, nightlife, etc.) in the suburbs in a well-off area in South Florida. How would adding more houses appreciate my property's value?
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.