I assume that their politicians were worried about all the people leaving.
It makes sense to set a lot of zoning policy at the state level, where all people are represented, so that incumbent local property owners can't selfishly micromanage everyone else.
Japan is an example of a place that does a great job with this. Housing there is more affordable and convenient. Residential side streets are off-street parking only, and each property can be a triplex, with one unit allowed to be a low-impact business, off-street. These side streets connected to larger roads with denser retail/apartments leading to planned high-rise areas that are allowed to grow when/if the population grows. Industrial areas are separate, on the other side of town.
To put it another way, it often happens that people will vote for candidates at the provincial/federal level that support increased immigration and/or population growth, and simultaneously vote NIMBY at the local level.
A multitude of entitled opinions that in a democracy hinder the construction of houses for the future generation