If you want equity in real estate nobody is stopping you. The problem is when people get this idea that we need to discourage investors from building very greatly desired rental housing.
The point is it's difficult and expensive to build in America. The core competency of construction in most cities is knowing how to grease the community boards', planners', affordable-housing advocates' and permitting offices' palms.
There are tons economically depressed towns that would absolutely love to have an infusion of property tax revenue
Go ahead, develop! And sell equity in the property. I've wondered if I would support my city requiring a certain percentage of dense urban lots be flats for sale vs. rental.