Comment by rcxdude

I think this argument depends on what exactly is constraining supply: if prices are at a level where there is still a profit to be made building new housing, it will be built anyhow. If developers and landlords truly are capturing an outsize fraction of the value in building and renting new property, then it might redistribute that value without affecting supply. But in that case the supply is being constrained by something else and it might be better overall to focus on relieving that constraint instead (property development and rental is an area with lots of room for creative accounting, and it seems to vary a lot who is making money and how, I would love to see some detailed breakdown on this).