Supply and demand control prices. Period. Adding supply will only fail to control prices if demand keeps rising. And if buyer demand keeps rising to keep up with prices? It would suck, but there's actually a silver lining to that: Rent goes down then.

Remember, now that we're punishing vacant units, every investment unit must be rented out. So as the investors make a mad dash to build and buy our endlessly-rising housing units, more and more inventory gets dumped onto the rental market.

Now, there's obvious downsides to this story, I'm not going to pretend the "own nothing and be happy" end is ideal. But it's better than the "own nothing and live in a fucking tent" ending.