If the government is willing to back a long term fixed rate mortgage, it’s hard for me to understand why those with that mortgage shouldn’t be highly restricted in the rent they can charge.
Why not just cut to the chase and ban loans for investment properties? Who would own the properties that renters need to live in if it's made un-investable? Some level of renting is probably healthy (more mobility, requires less capital upfront, etc).
I wouldn't argue we are in a healthily balanced environment in the US currently. But rent is a spot price that also has downside potential and if you want the market for rentable properties to exist, it has to be attractive to investors.
I think this regulation would eventually end up with a lot of assets concentrated with a few owners, the ones rich enough to pay cash and side-step the loan regulation you propose. At that point, it's going to be worse than our current system.
I don't understand your reasoning here. Are you saying that if we don't give money to property owners through subsidization of their mortgages, then there won't be rentals? Why wouldn't there be? They could still get loans they just wouldn't be government-backed.
Why is it worth interfering with the market here? If we want renters to be able to rent and support such interference why not just give renters money directly?
