President Donald Trump announced on March 15, 2024, that he is taking immediate action to prevent large institutional investors from purchasing single-family homes. In a post on TRUTH Social, he expressed concerns that the American Dream of homeownership is becoming increasingly unattainable for many, particularly younger individuals, due to rising inflation and previous economic policies.
Trump emphasized that homeownership has long been viewed as a significant achievement for hardworking Americans. He attributed the current challenges in the housing market to “Record High Inflation caused by Joe Biden and the Democrats in Congress.” His statement highlights a growing sentiment among many that corporate landlords are complicating the home buying process. According to a recent report from Yahoo Finance, approximately 90% of Americans feel that corporate landlords have made it more difficult to purchase homes.
In his post, Trump stated, “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.” However, he did not provide specific details regarding his proposed measures.
Trump plans to address housing issues further during a speech scheduled for late March at the World Economic Forum in Davos. He mentioned that he would discuss additional proposals aimed at improving housing affordability.
Recent analyses suggest that housing affordability may improve by 2026, as mortgage rates are expected to moderate. Yet, these rates are unlikely to return to the sub-3% levels seen during the pandemic. A Redfin report noted that the median home price has risen to $441,000, increasing by more than $100,000 in the last five years.
In December 2023, Trump hinted at unveiling “some of the most aggressive housing reform plans in American history,” and this latest announcement could mark the beginning of those reforms. A Bankrate report indicates that the typical family now dedicates over 40% of its income to afford a median-priced home, significantly higher than the previous guideline of 30%.
As discussions surrounding housing policy evolve, it remains to be seen how Trump’s proposals will be received by Congress and the general public, and whether they will effectively address the growing concerns regarding homeownership in the current economic climate.
