Why would any other living situation be more appealing? Everyone who lives in a  luxury condo does so because that the most appealing situation than can think of. if you suddenly think all the renters, along with all the foreigners who have these as summer or winter homes, are suddenly going to be willing to live in less luxurious places to help drive the average home prices down, I think you are being naive. Government intervention is the only thing that can bend the market.