Well she doesn't have the 500k. This is akin to saying we should force people out if market conditions make their house more expensive. That seems like a really strange consequence to all this, idk

Either housing is an economic asset subject to market forces, or it's not.

If it's not, then I would also like to live in a nice neighborhood for $100k and zero property tax, please.

On the other hand, if it is, then this person has a substantial economic asset that she could reverse mortgage, rent out, or sell.