It won't. Companies will always have more money to spend than people. We should add extra tax on house/apartments and you don't need to pay it if you live there. Initially landlords will add tax to rent but as the tax will increase (let's start at 1% and increase each year) eventually the rent will be so high nobody will be able to afford it and landlord will have to sell it.
I have thought something similar but more in terms of deduction for living in your own home. But it does make more sense to increase the cost of rent-seeking as well.
Also i pondered would adding a law that allows tenants to have an option for purchasing the house at market price for decreased taxation for the landlord help. That should make more people home-owners and thus allow them to generate more wealth in the long run.
Of course the whole topic is so complex it's impossible to invent any rule or law that fixes everything. But preventing useless speculation is what every common sense individual should wish for.
Owner occupied housing already gets a tax deduction because owners don’t have to pay taxes on imputed rent (in the vast majority of tax jurisdictions). It would be great to actually fix this because it distorts the housing market to the detriment of renters, but I’m not holding my breath.
