What's wrong with #3? Maybe it wouldn't have been popular 10 years ago, but after seeing the disastrous effects of a housing bubble, I for one would be perfect

What's wrong with #3? Maybe it wouldn't have been popular 10 years ago, but after seeing the disastrous effects of a housing bubble, I for one would be perfectly happy to see property speculation taxed heavily. For instance, I think a simple solution would be to eliminate property taxes altogether for primary residences, but levy significant property taxes on investment properties and second/third homes. You'd have to design this bit well, though, because you don't want to kill the rental market: a lot of people aren't in a position to buy their own home. Perhaps a tax break for a first rental house, but jack up the rates if you own more than one rental house.