I think an interesting side effect would be the massive reduction of houses being bought as rental properties. If you had no real way to cover a mortgage or even some of the absurd property taxes with the rent you could get, your wouldn't invest unless you really believe in the area or are buying to fix and sell.
It would basically tank the housing market and put everyone who owns a house with a mortgage under water. Would suck for me, and I'm not a landlord.