Houses get consumed surprisingly quickly. That’s why there is depreciation. That’s why in California the useful life on a carpet is 5 years for a rental. That’s why when you look at rent controlled areas, the rentals tend to quite cruddy.
You’re argument is the same as saying everybody workig down at the auto-shop doesn’t produce anything. They just do maintenance.
As for renters being willing to pay more, you’re wrong there too. Most renters aren’t renting because they can’t get loans, they rent because they perceive themselves as temporarily in a given location. They perceive ownership as being more expensive, time consuming and a hassle.
And frankly,most people grossly underestimate the true cost of ownership for a property. That’s why you see all that deferred maintenance in sales. Time consumes buildings.
