I agree with this. People buy a place to live usually because they like the qualities of that place. Changes to those qualities affect their day to day experience, whereas changes to their primary residence value usually only materialize when they need to access that value.

To me the issue is that densification (in the US; can't speak to other countries) usually comes with more downsides than upsides.

Mainly this is because of the US's focus on cars: the biggest downside is usually increased traffic. Unfortunately it feels towns in the US do the bare minimum to address it, like adding some traffic lights and maybe a lane or two.

Instead I wish the US had more good examples of densification for existing residents, where along with the increased housing larger steps were made to improve the community. E.g. significantly expanded mass transit, bicycling infrastructure, community third places, etc. And I get it, these things are really expensive and hard to do. But turning densification into something that more clearly benefits the day-to-day experience of existing residents would do a LOT to combat NIMBYism.