Ownership of single-family residential properties by large financial institutions should be limited to their traditional role - i.e. custodial ownership of a home for the duration of a mortgage.
We certainly need to build more, but that's no panacea. If you want the market to be efficient we first need to account for the systemic inefficiencies.
There exist good arguments for the existence of rentals in some capacity. However, the rentier class have abused their power enough to distort the market in their favor without adequately maintaining their properties. Once property has decayed too much to provide an adequate return the owners are left with a few options: massive capital investment that they won't make back for ages and in many cities won't justify a rate hike, insurance fraud, go bankrupt and walk away clean leaving a toxic eyesore to rot while keeping the all the illgotten profits. Holding corporate stakeholders personally liable for their properties externalities, and management failures, would help chill the burgeoning rentier class buying up everything they can rent, flip, or airbnb without a thought about how their actions effect everyone else. Sure, people will take a bath on their misguided 'investments', but that's what happens in efficient markets. 90% of Americans shouldn't suffer so a small class of people can make gains out of inefficient distorted and government reinforced markets.
Development companies aren't innocent here either, the crap they get away with doing and not doing is insane and dangerous. I don't think regulation is the answer to developer fraud, instead I believing strengthening the rights of owners/tenants and funding actions against bad developers to chill the industry against taking shortcuts is a better solution. If a developer knows that their own house can get taken for cutting corners they're going to be very invested in doing things right, and having the paperwork to prove they did it right, the first time. Sure massive companies building cardboard boxes might go bust, but that's what we want in an efficient market right?
