That argument relies on somewhat circular logic. You say one cause is that home owners don't want new housing. You solve that by repealing prop 13 giving them a financial stake in the market value of homes. However, why would the home owners support that repeal if they are against new housing in the first place? Either the home owners are against new housing or they aren't. If your suggestion was a feasible solution to the problem, it would prove that that your proposed cause was not actually the cause of the problem.
You missed the argument. The argument wasn't that homeowners should support repealing Prop 13 because it creates more housing. The lower taxes alone are enough to keep them from wanting to repeal it. The argument was that everybody else should support repealing Prop 13 because it gives homeowners one less reason to support more housing. There's nothing circular about it.
