If no one can afford even a down payment it's because supply is too low. It's not like there are tons of empty houses that mortgages are preventing buyers from acquiring.

Also first time home buyers qualify for very low down payments, like 5%, fwiw.

Supply isn't too low, supply has being diverted to investors who often don't reside in the home, or who short term rent it. If there was a big tax on non-owner-occupied single family homes that made it unprofitable to buy and hold or vacation rent, housing prices for single family homes would drop hard.

> housing prices for single family homes would drop hard.

No, they wouldn't. as evidenced anywhere this is tried

I'm going to need you to back that up with a fair amount of data, because this seems like an easy place for someone with an agenda to strawman.

First time homebuyers can get a FHA mortgage for 3% down. I think most people thinking about buying a house could put together $7,500 on a quarter million dollar home. And if you're looking to spend more than a quarter million on your first home, well then maybe that's the issue. Starter homes exist in all but a handful of cities.