While I agree with the sentiment that demonetizing residential real estate is important for long-term affordability, folks need to understand that the way your community funds it's fire, police, parks and schools is through a local property tax levied on the fiat value of a home.
Cratering fiat housing prices mean cratering local public services. We only want the demonetization to occur when measured in BTC because we haven't solved how to fund public community services in another way yet.
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It would be possible to adjust the property tax rate to account for the drop in price.