With the collusion of corporate entities setting prices, it raises the overall market prices of properties. As small-time landlords observe the markets, they naturally also raise their prices to increase prices.
Additionally, because of corporate capture and collusion in other markets, prices broadly increase for owning property. This forces everyone who keeps rent lower to raise rents.
The way to fix this is simple. Stop the corporate collusion by making laws that make it functionally impossible.
This can be done by the following:
- tax the hell out of corporate ownership of residential properties
- an increasingly expensive multi-home tax. First home is tax free. Second has yearly taxes and those taxes exponentially increase for each additional home.
- a vacant home tax. On top of any second home taxation, for homes besides your 1 home, there should be a vacant home tax. If a home does not have a resident in it, it should be taxed. That tax should be around what it would cost to rent the unit out.
There are some other additional factors such as penalizing foreign non-resident owners, but this covers the bulk.
Being a landlord should not be easily profitable. It should be a job that you work your ass off at.
Then and only then will the free market begin to function and optimize.