Maybe the mayor also cares about local businesses that get their income from city workers as well as the transport networks which need all the money they can get. Maybe they care about the tourist buzz from a busy city or the saftey in numbers.
You don't always have to assume the worst of someone just because they are powerful.
Don’t forget the suburban sprawl this sort of stuff will cause. Eating further and further into our natural habitats building giant houses for wealthy, privileged tech workers.
Work from home could plausibly have the opposite effect by liberating a lot of buildings from office use and repurposing them as homes. I know a lot of people who would prefer to live in a city rather than the suburbs, especially young people.
You don't always have to assume the worst of someone just because they are powerful.