Correct. Landlording introduces additional competition in the housing market, making buying and renting costs go up, and that's why it's profitable even when a lot of homes stay empty and a lot of people struggle to survive.
Add to that a political system that takes the side of large investors...
This is the most basic economics. You introduce additional, artificial competition for buying homes from a group wealthy people and - surprise - the prices go up.
You mean the demand goes up and supply does not change? That is not really an increase in competition, more like less competition in the market...AFAIS
Add to that a political system that takes the side of large investors...