Trump will prohibit large funds from buying single-family homes in the US.
The measure, which has not yet been detailed, aims to control the increase in rental prices.
BarcelonaUS President Donald Trump announced Wednesday that his administration is taking steps to prohibit Wall Street investors from buying single-family homes in an attempt to lower housing prices, once possible for funds managing real estate assets in the country. In a post on Truth Social, the Republican said he is preparing an initiative to implement it immediately and will ask Congress to codify the measure. He also stated that he will discuss additional housing and affordability proposals in a speech at the World Economic Forum in Davos in two weeks.
"For a long time, buying and owning a home was considered the pinnacle of the American dream," Trump argued, adding that inflation has put that dream out of reach for many Americans. "People live in houses, not corporations," he said. Wall Street giants like Blackstone, which manages a trillion-dollar portfolio of assets, have bought thousands of single-family homes since the 2008 financial crisis triggered a wave of foreclosures. This trend has drawn criticism from housing advocacy groups and lawmakers, including Democrats, who say investors have fueled inflation in the rental market.
Shares of homebuilders have fallen sharply following Trump's comments. American Homes 4 Rent plunged 6% to $30.56. Blackstone shares hit their lowest level in a month, at $147.52, and were down about 5%. The housing index fell 2.1% during the session on the U.S. stock exchange, nearing its biggest daily percentage drop since November 17.
Cost of Living Crisis
Following Trump's announcement via social media posts, it remains unclear what legal authority the president would invoke to impose this ban on private home purchases. The Republican has not detailed the policy, its form, or the legal changes he would seek in Congress. He was scheduled to sign unspecified executive orders on Wednesday.
The Republican president is under increasing pressure to address voter anxiety about the cost of living, just before the midterm elections that will determine whether Republicans retain control of Congress. Trump, who has often dismissed concerns about affordability and blamed inflation on his Democratic predecessor, has seen his own public support decline since taking office as Americans become more worried about the state of the economy.
