UT you are right it is more complicated but the factors are endless. I was not commenting on supply of homes to rent by investors. I was suggesting that the only way to increase supply is by building new homes, so the most bang for your buck if the government wanted to increase this would be providing tax cuts towards these buildings. However they have cut the scheme and instead erncourageing investors to increase leverage by rewarding negative gearing.
The rent market is not as simple as whether investors are providing homes or not. Because if the investor had not bought the property the perhaps an occupier would step in and thus decrease the rental demand cancelling out the equation. So thats why supply new homes is key and removing rewards for leveraging up would be best is government genuinely wanted to keep houses affordable.
