The current tax laws are what have helped distort housing prices in places like California. Being able to deduct taxes and mortgage interest from ones tax bill, along with historically low interest rates on home loans has allowed a new housing bubble to build. of course, money-hungry cities love it for property values to be inflated so they can get more property taxes.
The whole system is feeding on itself to create expensive housing. Take away the deductions and housing prices will fall... making them more affordable.
Somewhere, awhile back, the idea of owning a house was changed from a place to live to an “investment”.
California at least has prop 13... the politicians here dont like it, but they havent been able to overturn it yet...though they sure have found other ways to screw us.