Zoning regulations limits what you can construct in any given location, so it's not even about who has more financial capital, but political capital in many cases.
Not so much an issue anymore, though. Want to build a tiny house? No problem. Multiple houses on a single lot? Go for it! These would have been unthinkable 10-20 years ago, but have been given the green light in more recent times. Council knows that they can't get away with ignoring housing any longer. Of course, it's easy to accept because they also know almost nobody is going to do it.
