Canada

I would argue that landlords provide a service in providing a relatively predictable monthly cost of housing. On any given month a homeowner(and/or landlord) could have anywhere from $0 to thousands of dollars of unexpected expenses, things like a major appliance failing or plumbing/electrical issue. Plus there’s intermittent expanses that can be planned for, things like replacing shingles or proactively replacing an appliance approaching its end of life.

It also seems like a market with relatively free competition, given that the cost of purchasing a rental property can be relatively low compared to opening another kind of business. It’s relatively low risk since most of the expense is an appreciable asset, but also relatively low return (historically and over an extended period) than other market investments. Many would actually come out ahead by renting their home and putting the equivalent of what would go to toward their home’s equity into something like a mutual fund.

I think the biggest issue is just lack of good options at the lower end of the housing market. So much new construction is above the average home pricing because that’s where the builders are able to make a reasonable return. The more affordable properties are usually older units, often with significant issues. The Canadian government seems to be on the right track to getting more affordable units built. We don’t need more 1500+ ft^2 units, we need more units in the 500-700 ft^2 range. Something that a single person or young couple with minimal possessions can use as a starter home to build equity. Even if it gets bought by someone to use as an investment property, it can still have a relatively affordable rent while still providing a landlord a reasonable return on their investment.

More affordable units also reduces demand for the currently available units, bringing down prices for the mid-range market as well.