[dfas23]

This is terrible, people would just never sell their homes.

[joshlemer]

Real estate investors have to pay capital gains on properties they sell, do they never sell their properties?

[tempestn]

That's not comparable. RE investors are buying with the intention of selling and realizing an after-tax profit. For most individual homeowners if they're selling, it's to buy another property. Say you own a $1M home, and when you sell you're going to face $100k in taxes based on the gains to date. Now if you're considering moving you can only afford a $900k home instead. That would present a disincentive to moving.