Prices would drop where homes are commonly rented. I suppose rent could turn into lease to own in the interim period. It’s an interesting idea, I wonder if any economists have played it out.

What about those people that have homes but rent out a room? Or a townhouse that has 3 units, but the landlord lives in one?

I guess they could sell the units or move to a smaller place, but I think there may be an adverse effect of potential housing staying locked up because there isn’t a legal way to preserve options of ownership. It may decrease housing in some instances. Which force is more powerful though, I am not sure.