This idea is well over one hundred years old (closer to two!) [0]. Back when it was conceived of, solutions were proposed alongside the problem.
To use more in-vogue economic terms, the increase in value of housing is typically a result of positive externalities. The government adding taxes to the system to allow it to account for the externality is a very reasonable method of dealing with this problem.
It doesn’t solve the problem for everyone who bought into the pyramid scheme, though. Personally, though, I don’t have much sympathy for people using homes as more than a home.
To use more in-vogue economic terms, the increase in value of housing is typically a result of positive externalities. The government adding taxes to the system to allow it to account for the externality is a very reasonable method of dealing with this problem.
It doesn’t solve the problem for everyone who bought into the pyramid scheme, though. Personally, though, I don’t have much sympathy for people using homes as more than a home.
[0]: https://en.m.wikipedia.org/wiki/Unearned_increment