Dozens of people took part in a demonstration against plans to house asylum seekers in vacant apartment blocks. Protesters in Farnborough, Hampshire, said there had been no consultation over proposals to house up to 346 migrants in the building.
The government paused its plans on Wednesday, over concerns the building was "unsuitable".
The Home Office said it had a duty to provide safe and secure housing.
One protester told the BBC: "We welcome people to the area... it's a very multicultural area and we actually really enjoy that.
"But in the end, local services get stretched too far and I think this is the straw that broke the camel's back."
Another said she felt resources should be redirected to support homeless people in the local community.
"I appreciate the asylum seekers do [need it] as well, but isn't it about time we start looking after our own?" she said.
Aldershot MP Leo Docherty said he was grateful to hear the government was reviewing its plans for the block.
The Rushmoor Borough Council member had previously said the building was "entirely unsuitable" due to its location, type of accommodation and "other factors".
In a statement, the Home Office said the site would house "otherwise destitute families and single adult females" while they await their final asylum decisions.