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1. Thats what ends up happening, working class neighbourhoods have all the rentals steadily disappear as they are sold to upper middle class, and the rental units are never replaced with new rental developments because no one wants to invest in them.
2. The objective should be affordable housing whether you are a renter or home owner, as I explained earlier there needs to be a large healthy supply of rentals, rental caps restricts that supply.
3. which land lords are you talking about? are you talking about the rent controlled areas of the USA? if a Land lord wants to get out of land lording they have to sell their property to another land lord, because they can't force tenants to move out. So they either wait for tenants to leave and the convert the unit into an owner occupier, or sell to a slum lord who is happy to collect the base rent and let the property crumble until the tenants leave or the building condemned.
Some land lords just end up setting the building on fire to claim insurance, and then sell the land to a developer.
I agree that there needs to be a supply of rentals, for people who can't afford their own homes or those who move around a lot and don't want to buy.
What the actual numbers are I don't really know.
Low income housing is best left to government in my opinion, even though they have pulled out of that market it's really their responsibility, because commercial landlords don't want to deal with low income people.
As for those who move around but are still earning a good living I would say the numbers are increasing in these days of higher workforce mobility so there is a demand.
But in my view the majority of home seekers are prospective owner occupiers who can't get a look in because currently the system is geared (pun intended) towards investors who are driving up prices because they are more cashed up than the average buyers.