And a lot of them don’t. Debt is not a strategic play for most householders. Maybe when one is young, but most people seek stability when they have kids and as they get older.

You are generalizing. I know more people who are only single home owners. Perhaps you know wealthier or younger people than I do.

Also: you can’t penalize people for the benefit to get into more debt with more taxes. Then it no longer is a benefit.