It’s one of the things that has to happen in order for housing costs to come down. The first battle is getting inventories up, and this will encourage people to sell and builders to build. Additionally, there are steps (federally and at state and local levels) to block or disinsentivise corporations from buying everything as soon as it hits the markets but those measures are largely untested.
Once there’s inventory there’s still work to do, but none of that work will matter without the inventory.