Every single major population center that has distorted (high) housing costs relative to income, also has very strong protections for the existing home owners (NIMBY). "There are no coincidences..." The solution is terrifyingly simple: don't allow existing residents to block new housing developments. If they don't like it, they can move. This will probably never happen in the U.S., because the government no longer fu…
Well, depends on the level of government you're talking about. If it is local, then if local homeowners (who are local voters) don't want the development, it is eminently 'democratic.'
If I stop my neighbor from building an extension that's 1v1. Doesn't map easily to "democracy". Now, if I and the neighbor on the other side stop our middle neighbor building an extension... it's sort of democracy? The majority decides. But what if everyone else on our street wants to allow it? Now blocking is undemocratic. Thoughout all of this my neighbor might insist they don't care what anyone thinks and they should be able to do whatever they want with their own land.
The citizens of a particular city neighborhood blocking development is democratic when looked at up close and undemocratic when looked at from afar. There aren't any easy answers and anyone pretending there are is fooling themselves.