This isn't a problem with "trickle down". There's more demand than supply, so prices go up. Make your population grow more slowly, or build more houses, or pay more to live in smaller places. Those are your only options.
This is licence to do anything. That's far too broad. E.g. in this case: you're defining too much demand vs supply as a collective action problem, when it's really a political problem (net immigration to country), a state problem (net immigration to particular cities) and another state problem (too costly to build to make it worth people's while). Calling that a "collective action problem" is taking what's a pretty detailed picture and redrawing it in crayon, and then calling for a parent to "solve" it. Just fix the things that need fixing, and leave the things that you want left alone (but you accept the consequences of). Don't give power where it's not needed. Your parents weren't perfect, and the state is far less likely to get it right than your parents were.