Well that makes a lot more sense when you explain the capitalization of transaction costs. What I am proposing, however, would be implemented on a per-county basis. There are obviously certain counties with far higher homelessness numbers, and thus, those counties should have some sort of law incentivizing owner-occupancy.

However, I still disagree that increasing transaction cost is the effective solution. As you mentioned, increasing transaction cost would have a larger impact on those people who own a house for only two years or less. What if, instead, counties with homelessness issues implemented a longer vesting period making it impossible to sell a house until two years after the purchase (for non owner-occupiers)? In addition, taxes should be exorbitant on homes that aren’t occupied, so as to incentivize homeowners to list their housing on the rental market and actually compete on price.