There would absolutely be long-term benefits to lowering housing costs in parts of the country, but some people are going to have to feel the short-term pain to make that happen.
IMO its worse than that.. no asset has been "reduced" yet the tempers and decision making get worse and worse.. This is a fundementally divisive issue that brings out the worst in people. Community is nowhere to be seen when it comes to private property and the dollars that come with it. It is a bitter end-game of an explosive and wealthy 100 years of growth in this part of the world.
As the size of the loans go up, the stakes go up.
Separating the homesteaders from the investors would do a lot of good.
When I bought my house my realtor seemed unable to accept that I don't plan on ever selling. I bought this house because I like it and I want to live here, not because I think I can sell it in a few years. I work remote and I hate moving.
I know a lot of the HN crowd hates the thought of government regulation but I do agree that the individual interests are directly at odds with community interests and I'm not sure how to correct that without regulating the individuals.
With all the homeless people in the city I'm not sure why they would want to preserve that.