I don't think this is entirely true. If people who are currently renting move into homes then their apartments will be rented to people who are looking for hous

I don't think this is entirely true. If people who are currently renting move into homes then their apartments will be rented to people who are looking for housing. It seems like if you add supply to one area of the housing market like the one above, there is a group of people ready to take advantage of that supply. 3bdroom apartment renters buy a home, then 2bdroom apartment renters get a bigger place that's affordable and meets their needs. Assuming this works exactly like intended, that 1 family with two or three houses now only owns one and 2 other families get a house, then you're freeing up supply across the whole range of properties.