And this problem has been resolved long ago anyway. The solution only needs to be adopted. Alas, I fear the people only want a hard remedy and the politicians across the political spectrum, including the greens and the woke are right behind the people already.
For example, there are a total of 3 options, with the power to fully resolve this so called crisis almost immediately. The first being the present shambles. The 2 others already are very well understood within our academies of learning, as follows.
Option 2 - mandatory Land Value Taxation
Simultaneously, tax the annual rental value of the location of all real estate, slowly tapering up to 100% over time. And abolish all other taxation, slowly tapering it down to 0% over time likewise. Avoiding taxation on the building and any improvements which of course is capital, not land value.
To benefit from a home does not require ownership, just exclusive possession. With the benefit received from the home in that location paid back as a rent, in full. You pay, for benefits received. That's fair isnt it? Location value is far easier to assess more accurately than all other taxes. And given that tax comes out of rent in the end, clearly there is plenty available to fund the state. What is more this is the only tax which cannot be avoided or evaded. No wonder it is the least popular yet most efficacious.
Option 3 - voluntary Locations Value Covenants
If Option 2 is too radical, then use Location Value Covenants to allow the same thing to happen voluntarily rather than by statute. If the owner wants to volunteer the unearned rental value in their asset, in exchange for lower taxes or mortgage interest rates, then this is the option. It's voluntary so there's no state control and stupidity standing in the way of successful household budgeting.