That's the only way, because, as you said, municipal governments only answer to the people who live there. Here in Japan, they passed a national zoning law decades ago that prevents localities from enacting their own zoning legislation, and makes uniform (and extremely permissive) zoning across the whole country. Basically, if you own land, you can build housing there if you want, unless it's one of the uncommon heavy industrial zones. So there's no real shortage of housing; if it's profitable to build, they'll build it.
Lots of people complain that the result is chaotic-looking neighborhoods where there's no way to get the buildings to look similar to each other, but I really like not having to deal with all the crime and homelessness that results from the western model.
Japanese zoning is better in another way.
http://urbankchoze.blogspot.com/2014/04/japanese-zoning.html
Japanese do not impose one or two exclusive uses for every zone. They tend to view things more as the maximum nuisance level to tolerate in each zone, but every use that is considered to be less of a nuisance is still allowed. So low-nuisance uses are allowed essentially everywhere. That means that almost all Japanese zones allow mixed use developments
That's the only way, because, as you said, municipal governments only answer to the people who live there. Here in Japan, they passed a national zoning law decades ago that prevents localities from enacting their own zoning legislation, and makes uniform (and extremely permissive) zoning across the whole country. Basically, if you own land, you can build housing there if you want, unless it's one of the uncommon heavy industrial zones. So there's no real shortage of housing; if it's profitable to build, they'll build it.
Lots of people complain that the result is chaotic-looking neighborhoods where there's no way to get the buildings to look similar to each other, but I really like not having to deal with all the crime and homelessness that results from the western model.