Obviously people with no real income will not be rushing out to buy houses... however, lowering home prices would help prevent people from becoming homeless in the first place. If you only have to manage to pay for a $100,000 home, it's going to be much easier to keep those payments up.

For those already homeless, special assistance will be required to get them back into "moneyed" society. However, a lower entry point to homeownership would make this assistance less costly.