People believe that more businesses mean more competition. I've had long, drawn-out arguments that centered around this ideal that a basic income or citizen's dividend, creating a ton of people with guaranteed income streams, would draw out tons of landlords, who would create tons of housing, and then rent that housing at the bare cheapest "because of competition".
I tell people a Citizen's Dividend must be the minimum to get all basic needs. Basically, if landlords can rent a micro-unit at $300/mo, and people need $300/mo more to get food and utilities and such to live, you give them $600/mo. People want to give everyone $1500/mo, to which I say: the landlords will raise rent like fucking crazy and rent you the same shitty $300 apartment for $1000 (like in New York: $1500/mo for 425sqft studio; 425sqft rents for $500 here), because people just have $1000 to burn, and need houses. The overwhelming response? "Nuh-uh! Competition! Other landlords will get in on that, and the price will run down to the same price it would be anyway! Giving people more money doesn't cause inflation!"
They fail to consider risks, inelastic markets, the extreme cost of having empty units, and so on.