I've heard it argued that this is inaccurate in most cases; if you relaxed the regulations, the value of the properties would actually go up because you could s

I've heard it argued that this is inaccurate in most cases; if you relaxed the regulations, the value of the properties would actually go up because you could sell to developers to build multi-family housing (townhouses or apartments) on land currently used for single-family homes. I'd also add that the financial angle is in my view sometimes overstated; a lot of people just like their neighbourhood as it is and wish it would stay exactly like that forever. And that's perfectly understandable, if unfair on all the people who didn't win the historical lottery and end up with a single-family house in a nice street in (say) Berkeley.