Even at the peak of 2006 era lax underwriting standards only 70% of households were owner occupied. It’s a utopian but naive dream that if somehow we just tax renting enough everyone will magically become a homeowner.
There will always be a segment of the population that needs to rent. Rent taxes will massively drive up their living expenses, and have an at best marginal increase to home ownership rates.
Coincidentally, increasing rental turnover is a great way to discourage small-time landlords as a vacancy for 1-2 months can often wipe out any hope of profit or even just covering the mortgage for the year. Most small time investors would see buying a rental property as a money losing investment.
Also, why would everyone want to be a homeowner all the time? Renting is preferable for many at different stages of life. 70% is probably the most it should be.