That’s the beauty of it. You solve the supply problem, then investors don’t have an investment anymore. What are they gonna do, rent it out? You solved the supply problem, so now there are more houses than people to put in them.
If you have more houses than people willing to rent them, then landlords have to compete for tenants, pushing rent prices down - or landlords just end up selling properties they can’t rent, pushing house prices down.
If more houses are for sale, there are more choices for people buying houses. Instead of competing to buy a house, vendors will be competing to sell their house. If you can keep the supply of new houses coming, so you always have a surplus, then now you can’t make heaps of money renting houses and you can make it on capital gains, how do you make money in property?
(The answer is you lobby the government to let in heaps of migrants to fill up the housing, returning to a supply problem).
That’s the beauty of it. You solve the supply problem, then investors don’t have an investment anymore. What are they gonna do, rent it out? You solved the supply problem, so now there are more houses than people to put in them.
If you have more houses than people willing to rent them, then landlords have to compete for tenants, pushing rent prices down - or landlords just end up selling properties they can’t rent, pushing house prices down.
If more houses are for sale, there are more choices for people buying houses. Instead of competing to buy a house, vendors will be competing to sell their house. If you can keep the supply of new houses coming, so you always have a surplus, then now you can’t make heaps of money renting houses and you can make it on capital gains, how do you make money in property?
(The answer is you lobby the government to let in heaps of migrants to fill up the housing, returning to a supply problem).