It's a laudable goal but I have serious doubts about its achievability in cities that are already overpriced. Every single incentive leans in the direction of keeping prices high since not only would lower prices cost homeowners money but would also possibly cut into tax revenues and could financial ruin people who purchased under these high price regimes.

It's a bit of a ratchet. Once the prices go high, it's very hard to turn back. The only way out is probably to inflate the currency until a loaf of bread is $15 but housing is reasonable again, or for the state or federal government to offer some kind of huge tax write-off for depreciating home values. The latter is unlikely given the financial crunch faced by governments.