One big thing that could help address the problem is make buying a second home as difficult as borrowing to start a business or getting margin on a trading account. As it is, they are treated as any other primary home purchase because the government backs the loans. The government should not be in the business of propping up second home prices. The reason so many people are able to buy and hold multiple homes is because it's so easy to leverage 5x or even far more. Most margin investment accounts can only leverage 2x. This ease of getting highly leveraged on a home is also the only reason that homes as an investment outperforms the market. Because a 1% increase actually equates to a 5% ROI if you put 20% down on the house.