If you disincentivise individual ownership of expensive land and buildings, building dense housing becomes more profitable. Also, you can pay for social programs with the tax revenue.

>You can always build more housing or provide financial services to help poorer people buy homes.

At the edge of town? Why shouldn't we build more housing in the city center?

They won't become homeless. They will have to move after selling and incredibly expensive house. As opposed to those who are homeless but are not receiving any tax benefits for not having a home, they will have capital to rent for a long time and/or buy a new one in a cheap area

That's the hard question. Once you have a community that decides to so it differently, you can use democratic consensus or voting (partial exampl Vienna, lots of counter-market public housing), but to get there you either need force or political will for places like boulder (think cutting off any subsidies for private home ownership and replacing then with mandates to have public bodies or cooperatives build dense-but nice housing in their own backyard. Corruption management would of course be an issue, but at least in my country construction is famously corrupt even in the private sector...). For Honolulu I don't know...but is that actually an issue?