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Perhaps I misled by using the word "grassroots." The local elite are the NIMBYs. Their selfish interests as homeowners collectively greatly outweigh the business interests of the tiny minority of them who are property developers.
In other words, consider the archetypal mansion neighborhood way too close to the city center (for example: Tuxedo Park in Atlanta), whose single-family, large lot zoning physically displaces tens of thousands of people who could have been living there if development were allowed to meet demand. Even if the filthy-rich developers living there wanted to buy out their neighbors and profit fabulously from meeting that demand -- and they don't, because they themselves live there -- they can't because their neighbors are doctors and lawyers and CEOs and celebrities who are just as rich and powerful as they are and would never stand for it.
That's fair. I'm in a small/mid sized city that's still expanding into the neighboring towns so the impact is really bad at times.