Its a homestead exemption. Folks just living in their homes will be under less pressure to sell. Folks renting out homes will continue to pay full tax. With the behavior of property valuations, this seems rather humane.
Not being nitty, just didn't follow how your point connected and wanted to make sure I understood it.
But we might say it does not feel very humane
- increases in other taxes/other income sources
- decreases in services
- public debt
As someone who shares your view that housing shouldn't be purely market-driven, IMO it's especially important to consider the other side of the equation, because some people invest a lot of time, effort and money to prevent the first option.
One "obvious" income source would be to hire more tax collectors and let them focus on the largest conglomerates, but not like that's ever gonna happen.
This means the supply of 1-4 unit homes will go down over time for those who want to rent.