Ah, I missed part where home flippers left the market. I’m not totally following the chain of logic after that, but I am OK with that.
I am not convinced using regulation (tax incentive or otherwise) to drive larger landlords out of the market would improve the experience of the average renter. Some small landlords are terrible. With proper regulation, some ginormous ones are good (countries that do public housing well - government-run is bigger than any corporate landlord).
An appeals court blocked the rule, and Trump’s FTC had argued in support of it. They haven’t appealed the ruling, though. https://www.businessinsider.com/ftc-blocks-subscription-trap-click-to-cancel-ftc-rule-2025-7