The idea of charging owner-occupants a different tax rate than an investor is fairly common. At least 28 states already have some sort of general “homestead exemption”, “second home tax”, or similar policy.

The changes that need to happen are 1. the exemption needs to be increased at the same rate that the tax is increased; 2. The exemption and tax rate increases need to be tied to a specifically targeted owner-occupancy rate; 3. Federal and state governments cannot be allowed to overrule local authorities on issues of property tax policies.

It’s not a complete cure, but it will convert investors from parasitic landlords to parasitic investors. They’re going to keep ripping us off as best they can. But no matter how badly they will be exploiting us, we will be gaining equity in the process. Going from “zero equity” to “any equity whatsoever” is an infinite improvement over the current degree of exploitation in the housing market.