If you want equity in real estate nobody is stopping you. The problem is when people get this idea that we need to discourage investors from building very greatly desired rental housing.
I'm pretty sure investors are persuaded by money and little else — if renting is profitable they'll build rentals.
My problem is that the wealthy get wealthier while the middle class gets subjugated to permanent renter class.
Go ahead, develop! And sell equity in the property. I've wondered if I would support my city requiring a certain percentage of dense urban lots be flats for sale vs. rental.
This is the big problem with treating your home as an investment. People who just want a place to live near where they work now have to play this game too. And it's not cheap game.