Also, some concrete thoughts on the economics here: 1. Investors of this kind (those who buy relatively modest housing units to rent out) are far more sensitiv

Also, some concrete thoughts on the economics here: 1. Investors of this kind (those who buy relatively modest housing units to rent out) are far more sensitive about prices (because the price has to be justified by what they can charge in rent) than buyers who plan to live, who do not have a clear anchor. Therefore, they contribute to price stability - they will tend to buy in bad markets and sell in hot markets. 2. Transaction costs are extremely high in real estate and for most people that are able to choose between buying and renting, by far the most important factor isn't affordability but how long they plan to live in a give place. Actual home buyers tend to choose buying over renting precisely when prices are high and when they do so, they tend to buy larger and more expensive units than they would otherwise rent because they take into account future needs. This leads to increased demand as you turn marginal renters into homeowners. 3. People that are able to choose between renting and buying are typically well-off and making things slightly more affordable to entice them to buy isn't a social good. 4. People that are unable to afford buying units and are forced to rent are the poorer ones in comparison. These people benefit the most from a housing unit being turned into a rental because unlike the previous class, they do not have the flexibility to choose between renting and buying.