>Corpos that compete with me when I am buying housing for my family can go suck a big fat dick.

Why? If they're willing to overpay for properties it will benefit the current homeowner and will encourage new development

Does it really benefit the current homeowner if the house they buy with the money also has inflated prices?

And with that every single house around also increases in price, because house prices are often dictated by what comparable houses recently sold for. As if they weren't already expensive enough. Besides, I don't think lack of profit prospects is currently a bottleneck for house building. There seems to be tons of regulations and control to what is allowable to be built. And from, there it doesn't matter that building a house would be 20% profit, if it's illegal to do so.

Market forces exist whether you like it or not. If you design policy pretending that they don't, the market just spills over to a closed system of exchanging political favors, AKA corruption.