As with most things, engineering a blunt policy solution will lead to unintended consequences. If this proposal goes into effect, by clobbering local zoning codes, anything with sufficient money behind it is going to get built. This typically means projects that optimize for the developer's ability to extract rent from residents: 3 or 4-story apartments with small unit sizes, basic finishes made to aesthetically look…
The downside was (and in many places still is) an overloaded road network, as mass transit and road capacity did not keep up, despite equally frantic build-up.