Your local city council and county commissioner, through the construction approval process, doles out where development can take place and where it can't. And the market is stuck supporting the growth as best it can. Remember, local land use laws, and not the builder, determine where housing can be built. Town A needs housing because of job growth. A homebuilder sees a market need and builds houses in Town A according to local standards.
New housing cause more traffic, and crowds schools.
The locals don't like it. Added construction laws increase the cost of a house. It soon costs too much to build a house at a reasonable price people will pay. The homebuilder moves on to build somewhere else. Probably Town B on the fringes of Town A. Workers in Town A now need to drive to Town B to find affordable housing.