> The loss is not to the area. It's to the people who could have gone there, but can't due to housing prices.
Since we are talking about the productivity and economic growth of the area, rather than the salaries and quality of life of people who aren't in the area, how is this relevant?
Well, only if you don't look at, say, the field of economics:
http://www.citylab.com/housing/2015/06/nimbyism-is-a-huge-dr...
The loss is not to the area. It's to the people who could have gone there, but can't due to housing prices.