At least in North America the issue is federal and even state governments have divorced interests from municipal governments.

They are setting immigration allowances with respect to growth and financial planning.

Municipalities generally over the last 50 years decided they like their neighborhoods how they are, thank you very much.

Local governments needed to be building for this all along. Now we play catch-up.

Though, also, immigrant students are very desirable due to how much they general pay for school (and this subsidize the rest of the budget), and how little any municipal, state, or federal governments had to pay to produce a productive adult taxpayer.