Whenever there is a major affordability housing project, it usually gets shut down by its area residents who get to have a say. They’ll often say things like how it’s unsightly because it blocks their views or overshadows their detached homes. Which in turn decreases their own house value. There are plethora of reasons, but I believe that is the one OP is making. NIMBY in other words.
Lack of supply in housing is a severe crisis in certain regions, like Toronto for example, which is now rated as the #1 housing bubble in the world according to some banks with the biggest reason being lack of supply. The rapid housing prices is in turn making homelessness spike up.
Indirectly, but effectively, the local population is saying they’d rather have tents pitched near their homes rather than an affordable apartment near by.