Renting out property does create wealth. Think of a house as a factory that produces shelter. Running the factory, as opposed to leaving it idle, increases the amount of shelter in the world, and shelter is a form of wealth.
That’s a well-established economic theory and I’m not contradicting it. What I’m saying is that renting out the house after it’s built continues to create wealth. A world in which I build a nice house but keep it empty is wealthier than a world in which I leave the land unimproved, but a world where I rent that house out (or live in it myself) is wealthier still. The experience of living in that house, as opposed to some inferior option, has value.
Renting out property does create wealth. Think of a house as a factory that produces shelter. Running the factory, as opposed to leaving it idle, increases the amount of shelter in the world, and shelter is a form of wealth.
Building a house creates wealth. Owning the land underneath it does not, it merely captures a portion of the wealth produced by others.
That’s a well-established economic theory and I’m not contradicting it. What I’m saying is that renting out the house after it’s built continues to create wealth. A world in which I build a nice house but keep it empty is wealthier than a world in which I leave the land unimproved, but a world where I rent that house out (or live in it myself) is wealthier still. The experience of living in that house, as opposed to some inferior option, has value.