Rental houses disappearing?

100 people, living in 100 houses.
70 of them own or are buying their own home. 8 of these people are landlords who own 30 homes between them, rented to tenants.
30 are renting.

Governments change something. A landlord decides as a result to sell one of their rental properties: –
There are 2 potential types of buyers:
1. If it is affordable enough, a current renter may be able to buy it as their own home.
What happens to the numbers, 71 people living in their own home, 29 renters. No shortage of rental properties!                                          ….. 2.  An existing homeowner buys it.
Two things can happen:
(a) having bought it as an investment property, they continue to rent it out. No shortage of rental properties!
What happens to the numbers? 70 people living in their own home, 30 renters.
(b) they move into it themselves. Meaning their home is then rented out.  No shortage of rental properties!
What happened to the numbers? Still 70 people living in their own home, 30 renters.
If they subsequently sell their original home, there are 2 potential types of buyers; which simply starts the circle again!!

Maybe the self-absorbed property industry is trying to tell you a black cat is white, and hoping if they say it often enough you will believe it?    h/t – Grant Tenni