US President Donald Trump made the announcement this Wednesday that he would support some measures to reduce institutional investors ' purchasing of single-family properties in an effort to make it more economical for the average American to own a home.
The president claimed on social media that he is implementing these methods. " I did inquire Congress to codify it," I said. People "live in homes, not organizations," he said, adding that" for a long time, buying and owning a house was regarded as the height of the American Dream. " Housing prices have recently reached historic highs, largely as a result of a lack of inventory and a strong housing market in the face of strong demand. Trump also indicated that his speech at the World Economic Forum in Davos, Switzerland, scheduled for later this month, may address the subject more in-depth. Cover traders only account for 1 % of all single-family homes, according to an analysis from the independent think tank the American Enterprise Institute, and institutional possession is concentrated in low-income neighborhoods. The Government Accountability Office, for its part, made it clear last year that administrative expenditure does have an impact on prices. of accommodation and rent, which are harmful to Americans.
Although Bankrate data indicates that only 24 % of purchases made last year were by first-time buyers and that 75 % of current single-family homes are unaffordable for the vast majority of Americans, the National Association of Realtors claims.
The shares of big investment companies dropped dramatically following Trump's claims, such as Blackstone's share price, which was 4 %. Invitation Homes listings decreased by more than 7 %, while American Homes 4 Rent listings decreased by more than 7 %.
