Indeed - people cannot live in money. Giving them more money will not help them get a place if there are not more places available to get. It would only drive up the price as the same people compete for the same housing with more money. Or, if they have some form of rent control - simply greater frustration all around.

Another possible consequence is greater inter-generational friction as young people with more money out-compete existing, older tenants/owners for those homes.