It's the same thing everywhere. They'll put up a new strip mall and the old diner with character gets torn down. A road gets widened and a bunch of mature trees just disappear. Progress always seems to trade away the good local spots for something more generic. You find a place that works, then one day it's just gone for a new development.
Did you check if the housing project actually caused the trail closure? Sometimes land owners shut things down without it being the developer's fault. Trails get lost more from private property disputes than new buildings. I've known spots to close because of insurance worries or old agreements. You should ask around at the town planning office or a hiking club. Getting the full picture might show it was going to happen anyway.
Actually, the developer filed the closure notice with the parks department last month (I saw the paperwork). So this one is pretty directly tied to the new construction going in. It just means another access point is gone for good.