Individual house flippers will invest more aggressively than large corporations ever will, because they are eternal optimists who don’t just go by the numbers. No flippable house will go unflipped.
I used to flip houses. The damage done by corporate purchasing of these types of houses is that it caused many potential flippers to pay too much for what they were getting. Most flippers may be saavy in selling real estate, but not renovations or the business side (underwriting). Others may be saavy in renovations, but not selling or underwriting. Very very few were good at underwriting, but at the end of the day, underwriting is how you actually make money on a flip.
Good underwriting means you know what you have to do to fix the property up, how long it will take, and what you can sell it for after you are done. I have literally known thousands of flippers, and less than 10% can say they never lost money on a property. I was one of those 10%, and I got out of flipping in 2018 because it stopped being profitable. I was seeing houses go at auction for prices that were hundreds of thousands over what they reasonably should have. For most of the flippers, the losses they sustained wiped out their savings.
Yes, I absolutely want to get foreign investment out of our housing market, but getting corporate America out is also important. First, get them out of houses. Next, get them out of Apartments. Real Estate is the best path for most Americans to invest in their own future. Most of the millionaires in our first 200 years became so through real estate. Even Donald Trump made his billions in Real Estate.
When corporations take over those assets, it cuts off the ability of common people to climb out of their financial situation. Corporations make us renters, not owners.