BigChoc:
We need to explain clearly to everyone that you only get the public services - and the safety standard regs - that you pay for.
We can't get European levels of services if we vote for a US-style race to the bottom on taxes and cost-cutting and especially tax cuts for the rich.
Americans carry a large tax burden at local level that is property based. For the most part, each municipality votes for its own tax rate. Where I am, the local/municipal taxes fund building inspectors, public schools, libraries, police force and local drunktank/lockup, special ed services, fire services, emergency services/ambulance, services for the elderly, parks and rec facility maintenance and development, maintenance of streets and alleys, forestry services for tree care on municipal streets, wild animal removal from private homes, youth services if any, and a good few other services. Municipalities also usually levy an annual registration fee for household pets and vehicles owned. As an example of where the money might go and how much money is involved, my local public high school has an annual budget of $77 million, with 97% of that supplied by local property taxes raised in two adjoining suburbs with total population of about 60,000. That $77 million is just one school. There are in addition a dozen elementary schools and three middle schools in the two suburbs too. There are four public libraries, one of which would put a university library to shame. Two public swimming pools and an year round rink, and lots more.
Each county also levies taxes, in the form of sales taxes and property taxes. County taxes pay for the county hospital, county jails, county courts, sheriff's department, and a host of other infrastructure services. All tax initiatives are voted for. Both county and local municipality take their portion of property taxes.
Property taxes are separate in most places from water and sewer charges. Where I am, water is metered, meaning you pay for what you use. Sewer charges are fixed. Waste disposal is also fixed per household. If you rent, a landlord factors water and sewer and waste disposal charges and also property taxes into the rent charged.
There are exemptions for elderly owner-occupiers, and investment properties are taxed at a higher rate.
Income taxes are a different kettle of fish. They are levied by both the federal government and the state. You could easily pay much more in local taxes via sales tax (levied on everything including food) and property tax than in income tax. I know people who pay $30K in annual property taxes.
People tend to move to lower taxing municipalities when their children are finished with the schools in places where property taxes are high.
What makes a difference in the US to the perception of taxes is local control of expenditure and tax raising, and also the acceptance that you get what you pay for. Most people in the US are willing to pay local taxes within reason as they perceive it because a community with excellent facilities makes for a good price when a house there is sold.
Putting a cap on house prices is only possible in a centrally controlled economy. It would not work to anyone's benefit in any other system.
The only way to ensure a housing shortage doesn't occur and to avoid creating an owner/landlord paradise is to build good, solid and well-conceived public/social housing to keep up with demand.