Investors driving overvalued housing markets might face a correction if federal law curtails rental practices, channeling properties for families and reducing speculative demand.
I believe that while the proposed federal legislation might impact the housing market, it is unlikely to burst the housing bubble entirely. There is merit in the idea that limiting speculative rental practices could lead to a correction in overvalued markets, as it would reintroduce more balanced demand from families and practical investors. However, the influence of these policies on overall market dynamics also hinges on other economic factors. My experience in real estate shows that legislation often creates shifts rather than dramatic collapses.