So trickle down.....that could "theoretically" free up housing downstream by building in arguably the most expensive piece of RE in the country.....unless they are first-time homebuyers or renters dying to live in a prestigious zip code.
If the state really wanted to look at solutions to lower housing prices, you start by not building in the most expensive zip code in the state.
There are three things that make housing affordable or not: the rate, the amortization period, and the amount financed. CA is looking to reinstate their "Dream for all" program in '26. If those that are familiar with the program remember, it was a shared equity solution where the state gave homebuyers up to a 20% DPA. Upon sale of the house, the state receives 20% of the sale of the house. WA state experimented with this as well.
You can offer a focused approach with a program like this if you really want to help people, especially teachers, first responders, etc that can never afford to live in the communities they support. For ex. School districts could offer this as an employment perk for new/existing teachers to shop for homes closer to the schools, knowing they can now put up to 20% down. The elasticity of their purchase power is now stretched considerably.
Firefighters, LEO, etc could do the same.