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It's the same across the world.
The problem is that real estate has become an asset, a form of capital.
The only way out of this mess is to shift taxation away from labor and onto capital.
Higher property taxes (1-2%), that can be subtracted from income tax for working people are the answer.
Let's say Joe the Plumber and Elon the Muskrat both have an income of $100K and pay an income tax of $25K.
Joe owns one property worth $1M that he lives in and pays 2% tax on it, $20K. Which gets subtracted from the $25K income tax, meaning he effectively pays $5K income tax + $20K property tax = $25K combined property and income tax. Pretty sweet deal.
Elon owns 20 properties valued $500M collectively, which means $10M in property taxes. He officially resides in the most expensive $100M property and gets a $50K credit for that. The $50K is larger than the $25K, so he pays zero income tax.
Total tax is $10M.
This (or something like it) is the system the whole world must move towards if we want to simultaneously (a) lower taxes on working people (b) increase taxes on property and (C) not let working people lose economic power relative to the capitalists over the longterm.
The middle class has to outsmart the owning class if we want our children to remain middle class.
What would stop owners from shifting the burden to the renters?
As of right now this is already how property taxes are handled by most landlords: mortgage + tax + est. cost to fix incidentals + time managing paperwork = rent (in a fair situation - though most will tack on as much extra for "profit" as they can)
So if you have a house worth 600k (12k tax), the mortgage is $3500/mo, they would just charge $4500+ a month to cover their costs.
I think the only way is to add extremely progressive property tax to multiple ownerships, and a name always has to be attached as "owner". So your first house and second might have limited property taxes, but your third would be double, fourth would be quadruple, fifth would be 8x etc.
My example is already an extremely progressive property tax on multiple ownership, but yeah, it can be tailored as needed.
I, personlly, would be in favor of doubling the tax if no one is living there.
As for rent: the price of rent cannot be arbitrarily raised. If renters can buy more cheaply than renting, then landlords will have empty units.
So in your example, renters would just buy and pay the $3500 mortgage instead of renting.
Of course real life is more complex. Renters need access to financing, etc.
I'm glad we currently don't have this tax system in place otherwise rents would be absurd and growing right now!