New Jersey

Isn't this why a young, 2-earner couple can't possibly afford to buy a house and start a family?

No. Most of the seniors have left for places like PA, DE, FL. This property tax break is way overdue. NY has had theirs for over 20 years, as I understand it from a NY-er friend.

Furthermore, the real reason they can't afford to buy a house here is Manhattan. When Manhattanites decide to start a family, they come out here and a $750k ranch looks like a bargain. But the real reason they come here is the schools. They can get the equivalent of a private school education plus what they consider a deal on housing--2 in 1.

As far as your other points, I won't address them because they are painted with such broad strokes that I don't see the point in answering them.