How is this short-sightedness? Voters are voting for what's best for them, and it is indeed best for them. There are only two ways of fixing it: cancel democracy (in a dictatorship no one gives a damn about what people want, and developers make max profit by building everything they want), or cancel market economy, so the housing can't be sold or bought and the Party distributes it as it sees fit. Both looks to me worse than what we have today.

Cruel explanation: there is no way of organising society that's good for more than a half of people.