alt Hacker NewsThat can only happen if the higher density coincides with equal economic growth in the neighborhood. Otherwise, the higher density could result in a negative home valuation trend.
Given the above uncertainty, and higher density could result in more traffic, noise, crime, nymbys are likely taking the correction position for wealth preservation and quality of life.
"Traffic" doesn't come from higher density, it comes from zoning bans on mixed-use neighborhoods which force people to drive everywhere. The "crime" argument is especially silly: why assume that higher density only ever attracts criminals? Usually, having more people around is a positive.