This seems like a misdiagnosis. To my mind, the obvious problem is the wailing and gnashing of teeth whenever someone suggests building an apartment complex, let alone a homeless shelter. Impossible to take a step to address the problem if every proposal is shut down by concerned homeowners making a scene at every town meeting.
This town meeting driven zoning is ridiculously unique to America. In most places there's a faceless bureaucracy that decides whether the to issue the permit or not. They mechanistically check the zoning and other regulations and that's it. The neighbors can go to court if they seriously think the bureaucracy missed something.
Public hearing only happens when it's a public project.
I’d be curious to see a comparison with other countries with a federal system. My suspicion is that a fetish for local control makes these kind of beggar-thy-neighbor outcomes likelier, but most comparisons have people going for examples like Japan which don't have anything like a federal system.
