I suspect it will be hard to solving the housing problem without unwinding Prop 13 and some of the other issues that make it harder for people to sell homes.
It also increases the minimum price the seller is willing to accept for the property, because they won't sell unless the buyer offers enough to compensate them for the higher tax rate they'll have to pay on the new property. It increases the bid/ask spread on long-held properties, so that more often no transaction takes place at all until e.g. the owner dies and the property is sold in an estate sale for less than the owner would have been willing to accept if they were still alive.
Also to add to this discussion is the various props and "tax treaties" between counties that allow old homeowners the ability to transfer tax basis from their old property to the new one they're buying. But this is a once or twice in a lifetime deal.
Unfortunately the incentive problem here is real, and there isn't a super obvious solution to it. At least, not to me. Trying to shift the culture and convince people to vote against their own economic incentives is great and all, but I don't think it is destined for success at any significant scale.
I grew up in a single family detached home in Queens, NY in the 80s as the shift to bigger condos and rentals started. The newer buildings are almost always shoddy and ugly, and dealing with landlords for property issues suck as compared to the homeowner.