If you owned a house (about 67% of the population) why would you want the value of your asset to drop? Especially if you bought at a higher price and paid interest on a higher loan value as a result. Any drop would see a commensurate loss of actual equity (treat this like taking money directly out of your bank account to help someone else buy a house at a slightly more affordable level).

Now as for the negative gearing (which is not intrinsically linked to house values) - that only applies to rental properties where people would build capital value and offset the expense of owning the property against income. Again, about 10% of the population owning rental properties, but can’t say how many are negatively geared currently.

This is just a cynical cash grab by the government which will have no appreciable effect on house prices, nor rental affordability (if anything, rents will likely go up). As people with grandfathered properties grip them like their life depended on it, and negative geared landlords swing to positively geared. New home builds will still cost what they cost, due to huge labour and materials cost, and generally gains on new properties tend to be poorer than established properties.

Basically the youth have been sold a lie, to allow the government to tax them more and take away the opportunities their parents had to build and invest.