I doubt it would cool the market. Some would argue the $250k/500k capital gains exclusion kicked off the huge runup in housing prices in the 2000s. Suddenly it

I doubt it would cool the market. Some would argue the $250k/500k capital gains exclusion kicked off the huge runup in housing prices in the 2000s. Suddenly it was a very tax advantaged, leveraged investment. https://www.federalreserve.gov/pubs/feds/2008/200853/ https://www.federalreserve.gov/pubs/feds/2008/200853/ PROP 13 in California probably has similar distortions to the market.