My niece, at 18, was thrilled to move into her own place. She prioritized having her own space as a mark of independence and adulthood despite it being more economical to live at home. Renting-without-equity let her do this because she did not have to pay to build equity in a space. Instead, she could build "equity" in herself as an adult.

Every regulation, restriction, and string-attached pushes out someone at the margin. So, yeah, while some approaches look ethical what is not seen is those people on the fringe who lose something as a consequence of those "ethics".