Amid surging demand for apartments, the US rental market is contending with the largest supply of new units in four decades.

Regardless of whether investors currently rent to illegal immigrants, their competition in the market likely does.- Put Upward pressure on real estate operating costs: Increased costs for raw materials and supplies, and the likely increased costs for labor involved in many real estate related CapEx and maintenance projects signal the risk of increase in costs for real estate operators.If there is no impact on near-term supply, a modest slowing of inbound (illegal) migration, more reason to believe that the cost of many goods and services will increase, and real reason to believe that inflation triggered by something other than an increase in the money supply (namely the cost of specific goods and services that are NOT housing going up, which comprise the CPI) will force the Fed to raise rates, this, on the whole, is not good for real estate investment returns. 

Anywhere in between, I think it's deflationary because consumer won't continue to eat it & supply side is still long enough to not warrant new supply at tariff related prices.We really need to see how long this lasts.  

Licensed contractors supply materials and subsequently warranties.Also how would a flipper comply with assembly bill 968 if they supply materials? 

So I supply the locks, linen and towels.

So we're at a net 0 for supply. 

Everywhere I turn all I see are pitches for affordable housing and the same (not so) compelling arguments regurgitated by syndicators, capital raisers, brokers etc. for the investment strategy....strong returns...lower volatility....supply (huh?)

Provide the supplies.

Quote from @Andrea Lucarelli: I’m interested in beginning my REI career with purchasing a SFH or condo in Cleveland area (safe neighborhood) to list as a furnished rental for travel medical professionals, supply corporate housing needs, or house temporarily displaced families for insurance companies.  

As a result, the few homes on the market command higher prices due to basic supply and demand dynamics.Many homeowners hesitate to sell despite potential profits, as replacing their home would be significantly more expensive.