How? By buying a house someone else could have bought and actually lived in, thus increasing the prices for everyone? How does buying and renting a house provide something not already there?
Not everyone is wealthy enough or wants to move into an area and buy a house. Landlords make this possible. They also keep up with all the maintenance that any homeowner is familiar with. Houses are in a constant state of decay.
Except that landlords make a profit. The rent is higher than the mortgage+expenses. The landlord assumes risk of depreciation, but the response to the 2008 financial crisis showed that risk to be minimal.
That extra profit is an incentive for landlords to buy more, which pushes up the price of houses overall, whether being bought to live in, or bought to rent out
> The landlord assumes risk of depreciation, but the response to the 2008 financial crisis showed that risk to be minimal
Then it seems you think risk is overpriced. That fair enough.
But if the whole market of landlords disagrees, the burden is on you to demonstrate otherwise.
> the response to the 2008 financial crisis showed
That's like saying "the fact my house didn't burn down showed that my fire-insurance was worthless". That's not how risk works.
If you disagree, buy a house yourself, and offer it at lower-than-market rental rates. If no one with skin in the game is willing to do that, what can be done? It's not like the lower-end rental market is only affordable to the 1% - There are plenty small-time middle-class landlords.
> By buying a house someone else could have bought
I interpret "others are struggling having roof over their heads" as struggling to make rent, not purchase a house. If you struggle to pay the bills, it might be hard to get a mortgage.
> thus increasing the prices for everyone
The price is higher because someone else is taking on the risk. The alternative is prices are lower, but increasing the risk (and up-front cashflow requirements) for everyone.
> How does buying and renting a house provide something not already there
The house was already there to buy. Now it's there to rent. Again, I'd assume those who struggle the most are looking for rentals.
