Actually, very common in some European countries as well.

In the Netherlands, you aren’t taxed on your primary residence, but all other wealth has an approximately 2% annual wealth tax. This makes it challenging to accumulate wealth through any means other than a primary residence, which was many of my coworkers’ primary way of saving.

Granted, they also have mandatory pensions, which can give you a good income in retirement, but that’s different than wealth accumulation