Comment Re:Rent at all is inherently problematic (Score 1) 940
The corporations who (usually) commission and buy the properties don't have an "unending source of free money" any more than any other business has an "unending source of free money". There are risks to running a real estate business, like any other business.
The market could turn down, decreasing rent revenue while maintenance, administrative, and loan expenses stay the same. There could be a serious storm causing damage (yes there's insurance, but you still have to deal with either providing the affected renters alternative (hotel, usually) housing, or releasing them from their leases). A pipe could burst. The foundation could need work. Any number of things can go wrong.
It's like any other investment. You shoulder risk, and, if you're lucky, you reap a reward commensurate with the risk you took. And in doing so, you provide a product or service -- in this case, housing -- that society needs.
If you banned rentals, you would probably halt or nearly halt the construction of new apartment complexes, because the promise of a later revenue stream from those complexes are what entice businesses to take on the enormous risk and expense of building them. Probably the construction of apartment-complex-like condos would go up some to compensate, but there are many cases where apartment complexes make more sense to build than condos. Many people, for cost reasons or otherwise, want to rent -- not own a condo. These people would be the primary ones to suffer, because now the market is distorted and they can't get what they want/need. What makes you think poor people will be able to afford a condo?
Regarding your idea that the sudden increase in condo availability would decrease prices -- you're probably right, in the short term. The sudden depreciation in property would partially but by no means completely offset the harm you would cause the former renters. In the medium term, the apartments-now-condos would quickly fall into disrepair, because the owners (poor people) would be unable to afford to maintain the condos, as they don't have the money to speculatively invest in the housing market by doing so, which is what you would be forcing them to do by forcing ownership on people who don't want it.
No one's a serf in the system we currently have. And no one would benefit from your proposal.
Look at it this way: poor people can't afford risky investments, because they can't shoulder the risk. Real estate is a risky investment. You say there shouldn't be poor people; I partially agree, but don't think we should make everyone well-off enough to speculate on real estate. Mostly because I don't think we can.