I don't think you can say that universally. Some people prefer to rent instead of own. Some people would like to own, but would probably still only be afford to rent even if home prices were more affordable.

Sure, you can absolutely make the argument that for some specific region there are too many rental properties and not enough owner-occupied properties, by looking at the supply, demand, and pricing for each type in that region.

But you absolutely can't say that as a general statement. There is demand for both sorts of housing.

Why? Why should I care what the balance of rental and owner-occupied is? Owned is not strictly better than rented!

My wife and I prefer to rent. Greater flexibility. This is not a big problem any more than the fact that Costco replaced stock of Spiceology rubs with Bang Bang Sichuan seasoning.

Example of large buyer in thin market - just as up-thread described.

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