Soon the only entities that will be able to buy houses will be ones that can pay cash. This means that investors will buy up even more - so more inequality and rents that people can't afford.
Not necessarily. Right now, 70+% of house sales are to owners who will live in them. If they're (mostly) gone, house prices will collapse, and some existing investors will get spooked and start selling, driving prices further into the ground. Many investors will vow to never buy another house, and others will stay away.
> Institutional buyers made up 13% of the residential sales market in 2021, with the median purchase price of institutional buyers typically 26% lower than the states’ median purchase prices (Slides 6 – 15).
Source: https://cdn.nar.realtor/sites/default/files/documents/2022-i...