That's called inflation. Its not her fault that properties became so expensive. All she wants is a 3 bedroom house. Downsizing is not ridiculous no, but we do generally consider it unfair to push old people out of the houses they lived in their whole lives for ideological reasons.

I would rather we deflate house prices by making it unprofitable to own a home that you don't live in, and have a massive oversupply of new homes.