The flip side of that is the state then has to raise tax on investment properties in order to keep revenues stable. This in turn raises rents on rental properti

The flip side of that is the state then has to raise tax on investment properties in order to keep revenues stable. This in turn raises rents on rental properties as landlords absorb the greater tax load. This ends up being a very regressive tax structure because by and large people renting their housing are of lesser economic means than those who own.