This is true in many jurisdictions. Much less so, or not at all,
in Corvallis. We tack on "system development charges" (I believe
that's what they're called) which is intended to cover most of not
all of the road, sewer, and other infrastructure construction. So
current residents do not end up subsidizing new development
through increased taxes (though Corvallisians are pretty good at
taxing themselves for a variety of services). These charges make
new homes more expensive than they would be otherwise, for
example, in towns without high development charges.
Years ago I was under the impression that no development paid for its entire economic impact on the community Through systems development charges and other fees. The surrounding community got to make it up through increased taxes and fees. I have no links that I can cite because back when I heard this we didn't have links it was probably in the newspaper.Mark w