President Trump signed an executive order on Tuesday, prohibiting Wall Street investors from buying and owning single-family homes as he continues his push to prioritize affordability ahead of the November midterm elections.
“Buying and owning a home has long been considered the pinnacle of the American dream and a way for families to invest and build lifetime wealth,” Trump’s order reads. “But because of the recent high inflation and interest rates caused by the previous administration, the American dream has been increasingly out of reach for too many of our citizens, especially first-time homebuyers.”
On Jan. 7, Trump proposed the ban, saying that “people live in homes, not corporations.”
He said it wanted the ban made into law.
“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,” Trump wrote in a Truth Social post.
Competing With Families
On Tuesday, Trump said that “large” Wall Street investors have bought a “growing share of single-family homes,” creating competition with “hardworking young families.”
“Neighborhoods and communities once controlled by middle-class American families are now run by faraway corporate interests,” Trump said. “People live in homes, not corporations. My Administration will take decisive action to stop Wall Street from treating America’s neighborhoods like a trading floor and empower American families to own their homes.”
The order states that in 30 days, Treasury Secretary Scott Bessent will develop “definitions of ‘large institutional investor’ and ‘single-family home.’” Cabinet members will issue guidance to prevent “providing for, approving, insuring, guaranteeing, securitizing, or facilitating the acquisition by large institutional investors” of a single-family home.
The order reads that Attorney General Pam Bondi and Federal Trade Commission Chair Andrew Ferguson will review substantial acquisitions by heavy investors, “and prioritize enforcement of the antitrust laws, as appropriate, against coordinated vacancy and pricing strategies by large institutional investors in local single-family home rental markets.”
Firms, Trusts Have Acquired Many Single-Family Homes
“For a very long time, buying and owning a home was considered the pinnacle of the American Dream,” Trump wrote. He blamed the previous administration for damaging the American Dream for younger Americans.
According to The Hill, many real estate trusts and private equity firms have acquired a considerable number of single-family homes, which they ultimately rent out, destabilizing the homebuying market.
Trump and Republicans in Congress have focused on the affordability issue ahead of the midterm elections to tell voters that inflation has fallen and prices have improved.
However, The Hill reported that Americans largely don’t believe conditions have improved, which Trump acknowledged on Tuesday, stating that the administration might have “bad public relations people” selling his economic achievements.
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