I have thought something similar but more in terms of deduction for living in your own home. But it does make more sense to increase the cost of rent-seeking as well.

Also i pondered would adding a law that allows tenants to have an option for purchasing the house at market price for decreased taxation for the landlord help. That should make more people home-owners and thus allow them to generate more wealth in the long run.

Of course the whole topic is so complex it's impossible to invent any rule or law that fixes everything. But preventing useless speculation is what every common sense individual should wish for.