More than just the slowness of development or lack of housing that results -- the amount of red tape, approvals, and permits (for honestly ridiculous aspects of aesthetic considerations) that a city imposes, the more it discriminates against middle income / low income people.
What you find in our most liberal cities is that the more that entrenched old populations who got there first want to keep the city to be a certain character by making the permitting process difficult, the more it is that only rich people can afford to get through those processes.
Have you ever noticed that fancy new condos or rich people's houses are able to be built, while the average homeowner throws up his/her hands at the amount of permits and hearing necessary to get a simple remodeling done? It's really discrimination against anyone but the rich, who have the money to hire people who can navigate this system that's been created. I once randomly sat in a building permit hearing where the committee members seemed to out of obligation, require certain changes to any application that came along just to seem to be doing their jobs. The color of a door, the location of a chimney. Absolutely ridiculous.
Maybe the city has good intentions, but like so many things left on unintended autopilot, it has become a conservative force. The family of 4 who could either get much more out of their house in living space, upgrade their life, or at least sell it for more, are forced to give up those plans when confronted with the ridiculous permitting/approvals process.
So you end up with cities where only the rich can afford to apply for a permit and succeed at it.
We would do well to confront what we've incentivized, and whether they're living up to our claimed values.