[crazygringo]

How do you define "balancing out"? There's no such thing.

As long as taxes are the same between the two, the market will balance them.

Building is a separate issue.

[llimos]

It's not so complicated to judge whether rents are too high or house prices are too high or both. It might be somewhat subjective, but that's government's job - to make those calls.

[crazygringo]

But the market adjusts automatically so why do you even need a government to make a call?

That's like saying the government should be involved in making a call as to whether apples and oranges are too expensive relative to each other in the supermarket.

[llimos]

Because housing isn't a free market. There's a finite supply of land, and what you can do with it is even more tightly controlled.