Currently people invest in real estate expect a certain% return and if it's lower than that they invest in the stock market(or real estate elsewhere). Now ima

Currently people invest in real estate expect a certain% return and if it's lower than that they invest in the stock market(or real estate elsewhere). Now imagine we tax half their profits. This would cause two things. Landlords would convert rental units to owner occupied. Because rental units will now have half the value of a rental unit as it would as owner occupied. Then all rental unit developers would stop building until the scarcity of rental units drove up the leasing cost to make being a landlord profitable again.