Seems like we need to solve the demand part of the puzzle as well. There’s definitely no single easy solution here.
It could also be that too few cities have increased housing supply, so the local effect is totally overwhelmed by a national or global effect.
Either way, the bill is going forward, so we will be able to see the effects and reevaluate its effectiveness.
I don’t think the idea of “just let the population go down” is a reasonable approach. Especially since it will be poorer people pushed out, even lifelong residents who are displaced by highly paid newcomers.
It’s better to try something new and find out you were wrong than to never even try to solve the problem.