It isn't ridiculous at all.
One of the obvious outcomes would be that property prices would be far cheaper in proportion to wages.
Therefore more people would be able to afford to buy homes as they would not be competing against people who already own other property.
Are you saying that most people renting have no interest in owning their homes when they retire? People won't become homeless. The market would adapt to the demand. That's how economics works.
What you say is a ridiculous suggestion, which you clearly have not thought through.