1. Those who own houses as an investment have an incentive to block new housing construction. So ending RE as an investment helps accelerate laxer zoning laws.

2. There’s a limit to how much housing can be built in an area, but no limit to the leveraged purchasing power of an investor.

If you look at high density property markets around the world such as several Asian cities and NYC, I think it’s clear that more construction alone can’t stop price increases due to speculation.