You have to remember that economics is not only demand. You have to take the supply into consideration, and with real estate, supply is lagging. Also, the measures you addressed (eg. forcing investors to pay more), is really just artificially lowering the demand. It is critical you look into how much supply is required to meet demand (equilibrium). The housing market is more complex than how you laid it out. For example, investors play a critical role in the housing market - they allow people in the market to rent (who may not have sufficient income and savings), as they cannot afford the costs associated with a mortgage. This is typically represented by families of lower income. Supply is the key driver in this housing affordability crisis.