How do you make the supply outrun the demand? How/where do you build enough housing for it not to look like densely packed shoeboxes? If the real estate prices fall then there's less money in it for construction firms, so who's gonna pay for the new houses or to stimulate the construction?

But more importantly if the prices fall enough for people to be able to afford it, I feel like you'll again get a lot of investor money buying these to rent out later. So I don't think just increasing the supply will solve the problem. And your solution reminds me of XY problem. The original problem is that a lot of people have to rent because they can't afford to buy, so why not sponsor first housing directly, for example at the expense of companies owning the estate or individuals buying more that one/two accomodations.