> tax deduction for home buyers simply leads to higher home prices

This is actually a desired effect of a basic income. The poorest people often live in areas that are essentially cash starved with low real estate prices. There is often little incentive or ability to improve or maintain their homes. A basic income would provide the ability for many in such areas to spend on non essentials like home maintenance which could lead to higher prices and higher employment. Which in turn could lead to more pride in ownership and eventually end up re-invigorating those areas.