Completely with you on the general gist, but a few points: 1. It's not just LLs who have an incentive to keep supply down; it's homeowners too. And banks, and

Completely with you on the general gist, but a few points: 1. It's not just LLs who have an incentive to keep supply down; it's homeowners too. And banks, and estate agents (realtors), and builders, and media that relies on property advertising, and policians wanting votes and/or donations from any of the above. Anyone with a vested interest in higher prices has an incentive to constrain supply. 2. I don't think reduced buying decreases new build directly; a lot (most) of new-build here in London is being bought to rent (or even bought to leave empty while waiting for capital gains). Supply constraints are coming from all the people in point 1. 3. Various countries have failed in various specifics, but I think the overall driver for this worldwide is pretty clear: the Great Recession and resulting drive to "zero interest rates forever". The ultimate encouragement to take on ballooning mortgage debt, sending prices into the stratosphere and drawing in speculators, while at the same time punishing most non-parasitic forms of saving via financial repression.