Comment by jfengel
Having investment money inherently raises the price of rentals. There is a gap between how much the renters could conceivably pay and the minimum for which the house could be built and maintained. The actual price will be somewhere between the two. But if they are competing against investors, putting more money into the demand side, the price that renters actually pay is pushed towards their potential limit.
That is not what's best; it just concentrates more money in the hands of the investors.
> There is a gap between how much the renters could conceivably pay and the minimum for which the house could be built and maintained. The actual price will be somewhere between the two.
No, not necessarily. If there's enough competition for renters, then the homeowner may have to rent at a loss. Renting at a loss is still preferable to no collecting rent at all. Getting $90 on a $100 investment is bad, but better than getting $0 on a $100 investment.