Deflation can be even more destructive than inflation. It would basically make all kinds of debt more expensive, to which real estate is particularly sensitive. There’s a chance that could force over leveraged property owners to sell, but with more expensove debt, there will be fewer buyers and it would tend to be those who can take on the higher risk (aka the already wealthy).

All that is to say, I don’t have a solution either (especiallly if high taxes on non-dwelling properties doesn’t seem to be making an impact), but deflation is almost never good…