That's the idea. Fucking idiot government/central banks. They need to dis-incentivize this bullshit. I rented it out already a couple of years ago when I was living in a sweet downtown apartment and it was free money. Fucking bullshit. What world are we creating. I hope my children leave North America and force an economic collapse.
Actually at today's price (in SoCal, NYC SF...), ownership doesn't make financial sense, rental return on capital also doesn't make financial sense.
Home building, creation << household formation so I don't think there will be an oversupply. Even if there is, using 2007-2009 as a guide, it will quickly (within a few years) work itself out. The smart money will keep some of their powders dry and will be able to pick up some housing bargains like in 2009-12. The beauty of the US financial system is imbalances will be corrected quickly.
Oh come on, if you are a trader, these are fun places to live. https://www.bankrate.com/finance/real-estate/4-strange-unusual-homes-for-sale.aspx
It doesn't matter unless they are forced to mark to market. Since a lot of the boomer houses are paid off, they can hold indefinitely.