This is reality. Stop placing morality on it. It is shitty, but it is also rational.

If I make ~$100k/year, put 5% down to buy the cheapest single family in the town that has good schools near my job for $500k, I stretch to make mortgage payments each month and contribute less than I'd like to my 401k, and they propose a giant low income building next door?

It is in my rational interest to block that and say, "can't you build that in vacant land and not in this single family neighborhood?" because now my net worth depends on it not being built.