The main profit from the housing market comes from price speculation, that’s why we are in this bubble, and why so many properties are actually unoccupied. As soon as something that seriously threatens that they will sell. Renting it out is just extra gravy.

My house is a duplex that was owned by a small corporation that rented it out before I bought it (and did some horrible horrible landlord repairs I might add). They bought in 2012 for 200K, I bought it for 650K in 2023, they claim to have charged a total of 3500 a month (IDK if they charged that amount for the whole 11yrs, but lets assume that’s the case to be generous) . That means the profit from selling over this period is roughly equal to revenue from renting. If you knew the value would return to 2012 levels (which is the goal here right) in less than a decade then you’d be a fool to give up the appreciation of your property for a few more years of rental income. That’s before you even factor in the direct cost of the tax.

Now maybe that shock is inevitable, and should happen anyway, but to say that this smooths the process at all is silly.