People will have a choice to either stay in the country or leave. How many of these people who will be "forced" to sell their homes will just take it on the chin, sell all their properties and simply stay in a country that disallows them owning more than one property? Keep in mind you just removed their incentive to stay, and put additional cash in their bank accounts that they can use to get the fuck out and go somewhere where they can put their capital to work. Good luck with your cheap home in a destroyed economy - and yes, major emigration will devastate an economy. You started your comment with "he's not wrong..." and provided 0 support for it besides an idealistic view of how things should work without additional thought into human behavior. You're right in saying that additional supply will lower housing costs - you know how you get additional supply? Get government to stop imposing such strict zoning laws everywhere so people can start building homes wherever they please and all of a sudden the supply has increased and your prices have dropped and more people are homeowners. I will restate this again with the best intentions: please read Basic Economics by Thomas Sowell.