US to ban top investors from buying family homes: Trump
US President Donald Trump said his administration had moved to ban Wall Street investors from buying single-family homes in an effort to lower home prices; This is a potential blow for private equity landlords.
In a post on Truth Social, Trump said he would take immediate action and ask Congress to enact the measure, adding that he would also discuss additional housing and affordability proposals in a speech at the World Economic Forum in Davos.
“For too long, buying and owning a home was considered the pinnacle of the American Dream,” Trump wrote, adding that inflation had put that dream out of reach for many.
“People live in homes, not companies,” Trump said.
Wall Street institutions, including Blackstone, have purchased thousands of single-family homes since the 2008 financial crisis, sparking a wave of home foreclosures.
The trend has drawn criticism from housing advocacy groups and lawmakers, including Democrats, who argue that corporate landlords are fueling rent inflation.
Builders’ stocks fell sharply following Trump’s comments.
American Homes 4 Rent fell to a nearly three-year low of $28.84 and was discontinued due to volatility.
Its shares were last down nearly 6 percent at $30.56.
Blackstone shares fell to a one-month low of $147.52 and were last down 5 percent to $154.49.
The PHLX housing index fell 2.1 percent in the session, putting it on track for its biggest daily percentage decline since Nov. 17.
Blackstone did not immediately respond to a request for comment.
It was not yet clear what legal authority Trump would use to impose such a ban on home purchases in the private market.
Trump did not detail the policy, the form it would take or the legislative changes he is seeking from Congress.
The White House did not immediately respond to a request for comment.
The US president was to sign unspecified executive orders later Wednesday.
The Republican president is under increasing pressure to address voters’ concerns about the cost of living ahead of midterm elections that will determine whether Trump’s Republicans retain control of Congress.
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