I am very familiar with the housing industry.
As you say many developers are tied at the hip with local politicians.
In such a situation they have no right to complain about whatever crazy policies are in place.
But—there are always alternatives.
I know many developers who have chosen new areas because of local rules they did not like.
Usually they got local partners in the new area to get the introduction to the local pols.
“I know many developers who have chosen new areas because of local rules they did not like.”
Stuff sells really well in some places and not at all in others. Location, location, location. Areas where you can build anything are, in my experience, areas where you can’t sell anything. There’s an area twenty-odd miles from me where the price per square foot is half what it is where I am. I wouldn’t buy in those locations for even half of that price. Could you build whatever you want there? Probably. But why?