AFAIK, the issue around me is largely profitability. You can buy up acres if land, chop it up into 1/2ac parcels, quickly build cheap “luxury houses”, and sell them for 2-3x your costs, easily earning $200k+ per house sold (“Coming soon, from the low $400s…!”). And it’s all with fairly minimal regulation, compared to building high-density housing in existing cities. Compare and contrast that with building low- and middle-income high-density housing, where you’re going to end up managing it as apartments (probably not condos; that’s uncommon in my area); that means that you’re in the red for a larger number of years before you pay back the initial costs of construction, since the profitability comes through rents.

Maybe I’m wrong; all I can comment on is the kind of building that I’m seeing in my area, and the way that the closest city–which was originally about 90 minutes away–is now alarmingly close.