You’re right, if homeowners downsize they’ll lose out with lower prices. People don’t downsize very often.
But what policies are you talking about? How can the answer be anything other than increasing the supply of housing (or decreasing the demand i.e. the population)? Prices are only as high as they are because people pay them because they don’t have any other options. Rent is high because demand is high relative to supply.
The only thing I can think of would be higher taxes specifically in places with high house prices in order to fund huge investment in poorer areas to make them more attractive to people and businesses.
You’re right, if homeowners downsize they’ll lose out with lower prices. People don’t downsize very often.
But what policies are you talking about? How can the answer be anything other than increasing the supply of housing (or decreasing the demand i.e. the population)? Prices are only as high as they are because people pay them because they don’t have any other options. Rent is high because demand is high relative to supply.
The only thing I can think of would be higher taxes specifically in places with high house prices in order to fund huge investment in poorer areas to make them more attractive to people and businesses.