999 would not hurt the housing industry; it would stabilize it. Like most swords, the income tax deduction for making interest payments for buying homes is double-edged. Yes, it can encourage booms in the housing industry. (Not that booms are necessarily a good thing.) Obviously, people are attracted to put money in things conventional wisdom counts on to appreciate in value, especially when doing so reduces their tax rates. However, There Is No Free Lunch! The slack will be taken up in increased costs for new buyers. So this is just another kind of gimmicky pyramid scheme, for making younger generations pull burdens imposed by elders. The benefit of the income tax deduction is temporary, being most prominant for those who get into the game early, but less likely to flow through to very much benefit for following generations. Further, young families need to move more often to follow the job market. Home ownership, especially once the market stagnates, becomes an anvil around their necks. The popular benefits under home buyers' interest deductions are a lot like robbing younger Peter to pay older Paul (and the gimmick man in the middle). This cynical kind of connivery occurs every time government engages in stumulus shenanigans! Every time, these schemes blow unsustainable bubbles into the market. If government could be Made To Butt Out And Confine Itself To Its Proper, Limited Role, the market would become more balanced and less enticing to sharpies, panderers, and race baiters, who are practiced in arts for leveraging gimmicks, credit default swaps, and other unsane hedges, but who otherwise constitute drags on society. If the market were freed to balance home needs, people would be more inclined to rent while their jobs were in flux, and they would be less inclined to take speculative risks by buying homes that are larger than they need or can safely afford. Landlords would still build and rent housing, just more realistically coordinated with the market. It hardly takes an economist to spot a ponzi scheme. The goal should be to make Congress as unneeded as possible.