1. It isn't a given, but far more likely since they don't have the same disincentive. Attracting companies and tax revenue is generally something cities like to do. Alienating a large part of their population isn't. Especially not the wealthier parts.

2. I don't know about suddenly, but that would otherwise probably be an accurate assessment of the situation. At least relative to those who do.

Is there any western city, or a political party, who have intentionally lowered property values in the last decade and been awarded for it by voters? Has anyone even tried?