In general but I'm not sure this movement is that significant, we really need to go on a huge house building spree to solve our housing problems and it doesn't look like this is going to happen, largely because of political ideology.
If you don't piss off homeowners today, tomorrow situation will become even more dire. Pricess will be bigger, price growth expectations would be even more insane, regular people will be more disgruntled. So it should really be "piss early, piss often". Or face downward spiral.
It's pretty obvious how this should resolve: suppose there's two nearby towns (inside metro area) - one is building up but another one doesn't. Property prices will lower in both of them but onle one will be getting economic benefits, leading to second one following the suit. It only becomes problematic when cartel forms, blocking the development of entire area. Such cartels should be fought with.