Trump targets institutional investors in affordable housing push

[1srelluc]

MSN

(Bloomberg) -- President Donald Trump said he would move to ban institutional investors from buying single-family homes, the latest proposal from the administration to address housing affordability ahead of this year’s midterm elections.

“People live in homes, not corporations,” Trump said in a social media post Wednesday announcing the effort, adding that he would expound on the plan and other “Housing and Affordability proposals” at the World Economic Forum in Davos, Switzerland, later this month.

The news sent the S&P 1500 Homebuilding Index down almost 2.6%, with shares of homebuilders including Toll Brothers Inc., Invitation Homes Inc., KB Home and PulteGroup Inc. all down. Blackstone Inc. — a major investor in single-family homes in the US — fell by as much as 9.3% before paring some losses.

It’s not clear how much of an impact an institutional-investor ban could have on housing prices. Larger institutional investors own only about 2% of the nation’s single-family rental housing stock.

Still, Trump’s post earned early support from some GOP lawmakers. Republican Senator Bernie Moreno of Ohio announced he would introduce legislation to codify Trump’s proposal into law. Senator Josh Hawley, a Republican from Missouri, also expressed support for the idea.

Representative Bryan Steil, a Wisconsin Republican and member of the House Financial Services Committee, said he welcomed the focus on housing policy and wanted to learn more details about the proposal.

It would be good if, you know, CONGRESS was doing their job and taking the lead/addressing problems like this, not the president. Sadly, these days, we'll take what we can get.

Ha! Remember when congress would propose something and a POTUS would "signal" his approval or not?

 

[CrusaderFrank]

MSN

(Bloomberg) -- President Donald Trump said he would move to ban institutional investors from buying single-family homes, the latest proposal from the administration to address housing affordability ahead of this year’s midterm elections.

“People live in homes, not corporations,” Trump said in a social media post Wednesday announcing the effort, adding that he would expound on the plan and other “Housing and Affordability proposals” at the World Economic Forum in Davos, Switzerland, later this month.

The news sent the S&P 1500 Homebuilding Index down almost 2.6%, with shares of homebuilders including Toll Brothers Inc., Invitation Homes Inc., KB Home and PulteGroup Inc. all down. Blackstone Inc. — a major investor in single-family homes in the US — fell by as much as 9.3% before paring some losses.

It’s not clear how much of an impact an institutional-investor ban could have on housing prices. Larger institutional investors own only about 2% of the nation’s single-family rental housing stock.

Still, Trump’s post earned early support from some GOP lawmakers. Republican Senator Bernie Moreno of Ohio announced he would introduce legislation to codify Trump’s proposal into law. Senator Josh Hawley, a Republican from Missouri, also expressed support for the idea.

Representative Bryan Steil, a Wisconsin Republican and member of the House Financial Services Committee, said he welcomed the focus on housing policy and wanted to learn more details about the proposal.

It would be good if, you know, CONGRESS was doing their job and taking the lead/addressing problems like this, not the president. Sadly, these days, we'll take what we can get.

Ha! Remember when congress would propose something and a POTUS would "signal" his approval or not?

It won't move the affordability needle a single degree

Institutional accumulation is NOT the cause of the lack of affordability, it’s the ongoing debasement of the US dollar which was greatly exacerbated during the AutoPen Administration - a problem Trump is preempted from addressing

 

[1srelluc]

It won't move the affordability needle a single degree

Institutional accumulation is NOT the cause of the lack of affordability, it’s the ongoing debasement of the US dollar which was greatly exacerbated during the AutoPen Administration - a problem Trump is preempted from addressing

At least he is trying something.

 

[Hafar1014]

Institutional investors can control the cost of houses

 

[1srelluc]

Institutional investors can control the cost of houses

They damn sure control the rents.

They can easily manipulate local markets right now as the rate of large corporate ownership is over 20% in some metro areas.

 

[Independent thinker]

MSN

(Bloomberg) -- President Donald Trump said he would move to ban institutional investors from buying single-family homes, the latest proposal from the administration to address housing affordability ahead of this year’s midterm elections.

“People live in homes, not corporations,” Trump said in a social media post Wednesday announcing the effort, adding that he would expound on the plan and other “Housing and Affordability proposals” at the World Economic Forum in Davos, Switzerland, later this month.

The news sent the S&P 1500 Homebuilding Index down almost 2.6%, with shares of homebuilders including Toll Brothers Inc., Invitation Homes Inc., KB Home and PulteGroup Inc. all down. Blackstone Inc. — a major investor in single-family homes in the US — fell by as much as 9.3% before paring some losses.

It’s not clear how much of an impact an institutional-investor ban could have on housing prices. Larger institutional investors own only about 2% of the nation’s single-family rental housing stock.

Still, Trump’s post earned early support from some GOP lawmakers. Republican Senator Bernie Moreno of Ohio announced he would introduce legislation to codify Trump’s proposal into law. Senator Josh Hawley, a Republican from Missouri, also expressed support for the idea.

Representative Bryan Steil, a Wisconsin Republican and member of the House Financial Services Committee, said he welcomed the focus on housing policy and wanted to learn more details about the proposal.

It would be good if, you know, CONGRESS was doing their job and taking the lead/addressing problems like this, not the president. Sadly, these days, we'll take what we can get.

Ha! Remember when congress would propose something and a POTUS would "signal" his approval or not?

Long overdue.

 

[CrusaderFrank]

At least he is trying something.

He's just going through the motions. He knows better

Me personally, I'm so far past the point of "at least he's trying". He KNOWS what the problem is, DOGE waved the receipts in his face and he did nothing.

The Spending is like the Epstein Files, Voter Fraud Machines and every other issue he is not allowed to address, because his owners directly benefit from it

 

[1srelluc]

If a large institution doesn't buy a house, then someone else will buy a house.

The difference is the the large institution can and will overpay in certain areas if they believe it will benefit them in the long run.

They pay over market value in specific metros because once they own a large enough percentage of the local market, they can control it and drive up housing and rental prices. Sort of like price fixing.

On top of that, they can get lower interest, pay cash, etc due to their large purchasing power.

Joe Schmoe with a wife and his 2.5 kids will NEVER be able to compete with Blackstone. And neither will Joe Blow Property Rentals.

Sure, life isn't fair but neither is price fixing and that is what has been going on for years in real estate/rental markets through institutional investment....That's why it's grown from 2% to 4% during the FJB years.

 

[SeaMajor7]

He's just going through the motions. He knows better

Me personally, I'm so far past the point of "at least he's trying". He KNOWS what the problem is, DOGE waved the receipts in his face and he did nothing.

The Spending is like the Epstein Files, Voter Fraud Machines and every other issue he is not allowed to address, because his owners directly benefit from it

BLACK PILLED

 

[CrusaderFrank]

BLACK PILLED

Please explain how preventing Blackstone from buying more homes will make housing more affordable

 

[1srelluc]

Please explain how preventing Blackstone from buying more homes will make housing more affordable

See post #8.....It's not rocket surgery.

 

[SeaMajor7]

Please explain how preventing Blackstone from buying more homes will make housing more affordable

I don't know, to be honest, but I agree with the notion that corporations don't live in homes, people do.
My comment was based on your seemingly recent black pill posts about just about everything.
I can't really blame you, but I'm not there.....yet.

 

[CrusaderFrank]

I don't know, to be honest, but I agree with the notion that corporations don't live in homes, people do.
My comment was based on your seemingly recent black pill posts about just about everything.
I can't really blame you, but I'm not there.....yet.

I understand that and I don't take offense. It's not a simple subject. Affordable housing has become another money making industry for the political class and their donors. In NY, a new "affordable housing" project costs at least $750,000 per unit and several are almost $1MM per unit. The rents are "affordable" to the tenants because they're limited by law, but the affordability of the housing could have been accomplished at a fraction of the cost. The real beneficiaries are the developers who in turn fund the political class.

I sincerely thought Trump was going to move the needle to make America work for Americans in his second term and he's just been a complete bust. The worst of it is that the people who actually see the problem and want to fix it like Massie, Rand Paul and MTG are treated like war criminals. Then we have JD, the Republican Obama waiting in the wings to assign seats in the digital cattle cars

He's done some good, but he's not nuked what I incorrectly have labeled the Progressive Jihadists Infrastructure. It's not Progressives, they're just the facade.

 

[CrusaderFrank]

See post #8.....It's not rocket surgery.

Overpaying for luxury homes is not the core of the problem. In any event, most of the "overpaying" comes from self dealing resales to establish a new and higher baseline.

The problem is that the rents to support cost of construction or acquisition today are at least double or triple what the middle class can afford. That's solely because we have far too many undervalued dollars chasing a basically stable supply of goods.

 

[Lockback]

At least he is trying something.

It's a brilliant move.
Our HOA instituted a rules change a couple of years ago to prevent institutional investors from buying condos in our community. We've seen it coming for some time.
Trump gets it.

 

[1srelluc]

Overpaying for luxury homes is not the core of the problem. In any event, most of the "overpaying" comes from self dealing resales to establish a new and higher baseline.

The problem is that the rents to support cost of construction or acquisition today are at least double or triple what the middle class can afford. That's solely because we have far too many undervalued dollars chasing a basically stable supply of goods.

Good point about our sad dollar.

 

[SeaMajor7]

I understand that and I don't take offense. It's not a simple subject. Affordable housing has become another money making industry for the political class and their donors. In NY, a new "affordable housing" project costs at least $750,000 per unit and several are almost $1MM per unit. The rents are "affordable" to the tenants because they're limited by law, but the affordability of the housing could have been accomplished at a fraction of the cost. The real beneficiaries are the developers who in turn fund the political class.

I sincerely thought Trump was going to move the needle to make America work for Americans in his second term and he's just been a complete bust. The worst of it is that the people who actually see the problem and want to fix it like Massie, Rand Paul and MTG are treated like war criminals. Then we have JD, the Republican Obama waiting in the wings to assign seats in the digital cattle cars

He's done some good, but he's not nuked what I incorrectly have labeled the Progressive Jihadists Infrastructure. It's not Progressives, they're just the facade.

Can't argue with most of that, but like I mentioned, I'm not giving up yet. Save me a seat on the deck of the Titanic though, just in case....

 

[drudge X]

This will be tough for Democrats. They have been complaining about Blackrock and other institutional investors buying chunks of properties while pricing out the little people. Will leftists credit Trump or scream he is anti-capitalism?

Trump Moves To Prevent Large Investors From Buying Single-Family Homes

President Donald Trump has taken to his Truth Social account to announce an initiative aimed at restricting large institutional investors from purchasing single-family homes in the U.S., a policy he says is critical to addressing the ongoing housing affordability crisis.In the post, Trump stated...

nationalmortgageprofessional.com

 

[CrusaderFrank]

Good point about our sad dollar.

The main reason I’m so far from MAGA is that the dollar debasement is completely intentional and can be reversed. In fact, Trump knows this, use to give interviews about how bad the debt was when it was half what it was today and now has decided to do card tricks instead

It won’t be easy or pretty, but 18 months of pain > lifetime of slavery

 

[Mac-7]

MSN

(Bloomberg) -- President Donald Trump said he would move to ban institutional investors from buying single-family homes, the latest proposal from the administration to address housing affordability ahead of this year’s midterm elections.

“People live in homes, not corporations,” Trump said in a social media post Wednesday announcing the effort, adding that he would expound on the plan and other “Housing and Affordability proposals” at the World Economic Forum in Davos, Switzerland, later this month.

The news sent the S&P 1500 Homebuilding Index down almost 2.6%, with shares of homebuilders including Toll Brothers Inc., Invitation Homes Inc., KB Home and PulteGroup Inc. all down. Blackstone Inc. — a major investor in single-family homes in the US — fell by as much as 9.3% before paring some losses.

It’s not clear how much of an impact an institutional-investor ban could have on housing prices. Larger institutional investors own only about 2% of the nation’s single-family rental housing stock.

Still, Trump’s post earned early support from some GOP lawmakers. Republican Senator Bernie Moreno of Ohio announced he would introduce legislation to codify Trump’s proposal into law. Senator Josh Hawley, a Republican from Missouri, also expressed support for the idea.

Representative Bryan Steil, a Wisconsin Republican and member of the House Financial Services Committee, said he welcomed the focus on housing policy and wanted to learn more details about the proposal.

It would be good if, you know, CONGRESS was doing their job and taking the lead/addressing problems like this, not the president. Sadly, these days, we'll take what we can get.

Ha! Remember when congress would propose something and a POTUS would "signal" his approval or not?

I like the idea