This is complete nonsense in so many ways. Multi-unit housing is mostly illegal to build, and even projects that do meet zoning requirements can get blocked by endless red tape. Fix that and housing becomes cheaper to build and it won’t all be “luxury”.

Also, “luxury” is just a nimby boogeyman and doesn’t mean anything. Older housing is still very expensive, because there is simply not enough housing. Even if new housing does come with a small premium over older, people move out of older housing into the newer housing freeing up space in the slightly less expensive older units for lower income residents, and the market as a whole gets less expensive as you build enough housing to meet demand.