It discourages people from downsizing as empty nesters. It discourages landlords from remodeling/improving their property. It allows long time landowners to sit

It discourages people from downsizing as empty nesters. It discourages landlords from remodeling/improving their property. It allows long time landowners to sit on underutilized properties for a long time, as they wait for prices to go up even higher, instead of nudging them to redevelop sooner. The housing market has few properties on the market, which is part of a why prices are so high.