I lean reflexively libertarian on housing (mostly just my psychological NIMBY backlash). Therefore my take is that the market would naturally accomplish the sch

I lean reflexively libertarian on housing (mostly just my psychological NIMBY backlash). Therefore my take is that the market would naturally accomplish the scheme you've described, no need for policy, if we simply remove constraints on supply. Basically, the "stop hitting yourself" policy of housing :) Unfortunately it doesn't work that way and never will, not just because of NIMBY but because of the reasons I outlined above.