>President Donald Trump said the U.S. should bar large institutional investors from buying single-family homes, arguing that corporate ownership has helped push housing further out of reach for everyday Americans.
>“For a very long time, buying and owning a home was considered the pinnacle of the American Dream. It was the reward for working hard, and doing the right thing, but now, because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans,” Trump said in a Truth Social post Wednesday.
>“It is for that reason, and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations,” he added.
>Private equity giants, real estate investment trusts and other large institutional investors have amassed sizable portfolios of single-family rental homes over the past decade. Many have argued that it in effect reduced the housing supply for would-be homeowners and helped drive up prices.
>Trump did not provide details on how such a ban would be implemented. Trump said he plans to outline additional housing and affordability proposals during a speech at the World Economic Forum in Davos in two weeks.
PalpitationFrosty242 on
This topic is overblown; PE owns, what, like ~2% of SFH? This will do nothing to bring home prices down. Glad it’s being done, but I don’t expect much to come from this
ICLazeru on
Depending on the implementation, this may not be a bad idea. Though it is still just one part of a large, complex problem.
I would hope to see zoning and regulation reforms on state and local levels, along with finance reforms as well.
CQscene on
I doubt this happens in any meaningful way, much like the price of insulin is just fodder for the base.
Shifty Schiff already proposed this years ago, and the GOP blocked it, wouldn’t even let him bring it to the floor.
BrightAd306 on
I think this is a good thing. I’m a free market believer, but mega corporations with global money and billionaire investors are a lot like regulating monopolies. There are times when regulation is a must to protect average consumers.
I do think mom and pop landlords are a good thing for the economy.
giraloco on
Anything other than encouraging more construction is going to do nothing to make housing affordable. Having some homes being built by corporations and professionally managed shouldn’t be a problem if there is competition.
ChaoticDad21 on
that’s what we need…more government interference in the markets
Let’s not address the core of the issue, which is monetary inflation via money printing. Institutions buy as much as they want of every other asset.
Vesploogie on
“Trump did not provide details on how such a ban would be implemented”
Replacing Obamacare, Trump’s infrastructure plan, lowering insulin costs, etc. Just toss another one on the pile.
John_Q_Publiq on
This will do next to nothing. For all the hype around investors buying up property the fact is “Large Corporations” own about 2-3% of single family homes in this country (admittedly there are some spots where that is higher).
FYI if you ever hear the 20% figure toss around; that’s Investor Owned, different from a large corporation. My neighbor owns a second home in Florida that he rents out. Are we banning him from buying homes as well? (I hope so, he’s kind of an asshole)
9 Comments
>President Donald Trump said the U.S. should bar large institutional investors from buying single-family homes, arguing that corporate ownership has helped push housing further out of reach for everyday Americans.
>“For a very long time, buying and owning a home was considered the pinnacle of the American Dream. It was the reward for working hard, and doing the right thing, but now, because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans,” Trump said in a Truth Social post Wednesday.
>“It is for that reason, and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations,” he added.
>Private equity giants, real estate investment trusts and other large institutional investors have amassed sizable portfolios of single-family rental homes over the past decade. Many have argued that it in effect reduced the housing supply for would-be homeowners and helped drive up prices.
>Trump did not provide details on how such a ban would be implemented. Trump said he plans to outline additional housing and affordability proposals during a speech at the World Economic Forum in Davos in two weeks.
This topic is overblown; PE owns, what, like ~2% of SFH? This will do nothing to bring home prices down. Glad it’s being done, but I don’t expect much to come from this
Depending on the implementation, this may not be a bad idea. Though it is still just one part of a large, complex problem.
I would hope to see zoning and regulation reforms on state and local levels, along with finance reforms as well.
I doubt this happens in any meaningful way, much like the price of insulin is just fodder for the base.
Shifty Schiff already proposed this years ago, and the GOP blocked it, wouldn’t even let him bring it to the floor.
I think this is a good thing. I’m a free market believer, but mega corporations with global money and billionaire investors are a lot like regulating monopolies. There are times when regulation is a must to protect average consumers.
I do think mom and pop landlords are a good thing for the economy.
Anything other than encouraging more construction is going to do nothing to make housing affordable. Having some homes being built by corporations and professionally managed shouldn’t be a problem if there is competition.
that’s what we need…more government interference in the markets
Let’s not address the core of the issue, which is monetary inflation via money printing. Institutions buy as much as they want of every other asset.
“Trump did not provide details on how such a ban would be implemented”
Replacing Obamacare, Trump’s infrastructure plan, lowering insulin costs, etc. Just toss another one on the pile.
This will do next to nothing. For all the hype around investors buying up property the fact is “Large Corporations” own about 2-3% of single family homes in this country (admittedly there are some spots where that is higher).
https://www.strongtowns.org/journal/2024-02-21-going-after-corporate-homebuyers-is-good-politics-but-ineffective-policy
FYI if you ever hear the 20% figure toss around; that’s Investor Owned, different from a large corporation. My neighbor owns a second home in Florida that he rents out. Are we banning him from buying homes as well? (I hope so, he’s kind of an asshole)