This happens all of the time. Local governments and existing residents are a forceful voice against new building.
Besides, local municipalities can make it easier to build by alleviating some of the time consuming (and expensive) permitting process but they don’t really care. There’s all kinds of things they can do even just with zoning.
Name one example where Google has made an actual attempt to build housing and was actually stopped by a local government.
One?
They give lip service regarding the general concept but have yet to put so much as a specific development before a planning commission, let alone a city council.
Besides, local municipalities can make it easier to build by alleviating some of the time consuming (and expensive) permitting process but they don’t really care. There’s all kinds of things they can do even just with zoning.