The correct answer is probably to build some new housing supply but definitely not as much as the peak demands.
Why is that? It doesn't change the fact that once the mines are gone, they're gone. The value of existing homeowner's investment has been preserved but nothing's been done to buffer the economy or help people pushed out of rentals. It's just transferring wealth to rentiers.
Diversifying the economy -- having an environment more encouraging to industry, not less -- is the right answer.