I think this is a huge part of the problem. Rental property owners are just a liability buffer for the banks. There should be mortgages at a 1% down payment for first time buyers with a proven track record of making rent payments on time. Maybe the rates are a little higher, with the extra interest giving the banks motivation for taking on the extra risk. Then after the first term the owner can renew with a normal rate.

Doesn’t help with the demand issue, but maybe all the rentals will flood the market after nobody is being punished for not having $100k laying around because they’re busy paying someone else’s carrying costs.