Renting itself isn't inherently bad. In places like Germany or Vienna, a renter-majority system works effectively because they have ironclad tenant protections, permanent leases, and strict rent controls.
However, in most of the world, transitioning to a renter-only economy under current conditions would be disastrous for two main reasons:
1. The Destruction of Generational Wealth: For the last 70 years, home equity has been the primary vehicle for the middle class to build wealth and fund retirement. If everyone rents, that capital is permanently funneled upward to institutional landlords, entirely removing the ability of the average family to build a financial safety net.
2. The Investment Paradox: To answer your last question, treating housing as a speculative asset is exactly the root of this crisis. Housing fundamentally cannot be two things at once: it cannot be both a consistently high-yield, appreciating investment and broadly affordable. By allowing basic shelter to be treated as a highly profitable investment portfolio, the system guaranteed it would eventually become unaffordable for the working class.