The challenge is that the people who live in an area use the rules in such a way as to make building new homes very expensive or outright impossible. The people who would like to live in that area have no say, and lack representation.
The bigger picture here is that it means even two rational people can inadvertently make the situation worse for themselves.
Person A lives in City A, but wants to move to City B
Person B lives in City B, but wants to move to City A
Person A votes to make it hard to build new homes in city A, because it makes their own home worth more.
Person B votes to make it hard to build new homes in City B, because it makes their own home worth more.
It makes sense in a self-interested way but both wind up worse off.
And I just meant that the car park is butt-ugly and shows the council's true priorities. They could at least put it on the edge of the village.