Even setting aside rental income, the increase in property value itself has been plenty remunerative.

You are entering personal opinion territory with that remark, which has no place in a discussion, but I will stricken the opinion part and work with what information remains. Given that, I take it to mean that a business seeking profit does not necessarily need to find profit by way of cashflow, but rather asset appreciation. Is that a fair assessment?

That is technically true. Agriculture in particular loves that model – and it has burned many, many, many farmers before. Remember the 1980s? They had to go as far as to have concerts to try and bail farmers out because it got so bad. It is super high risk. Farmers will often put up with that insane risk because they have a passion for farming and will take the risk just so that they can do what they love.

Does anyone have a passion for being a residential landlord? To the best of my knowledge, the answer is no. Landlords are in it purely as a business. And a business is going to focus on income fundamentals to not go down the road of needing concerts to save them when the promise of asset inflation fails.

Of course, with big risk comes the potential for big reward, but it seems there is no reason for residential landlords to take that gamble. It is not a passion project.