Trump wants to ban Wall Street from buying private homes: reasons

Donald Trump announced his intention to block the ability of large investment funds and corporations to buy single-family homes. The US President is convinced that such a move will help reduce real estate prices and return the opportunity for Americans to realize their dream of owning their own home. About this reports Reuters.

In a post on Truth Social, the White House announced immediate action to implement the ban. Trump also called on Congress to enshrine this decision at the legislative level, although specific implementation mechanisms have not yet been specified.

"For many years, buying and owning your own home was considered the pinnacle of the American dream," Trump wrote, emphasizing that inflation had made this dream unattainable for millions of his compatriots.

Trump has railed against the corporate approach to housing: "People live in homes, not corporations." The statement comes amid growing pressure from voters demanding action to lower the cost of living ahead of the congressional midterm elections.

After the 2008 financial crisis, when a massive wave of home foreclosures began, investment giants began actively buying up real estate. Companies such as Blackstone, American Homes 4 Rent and Progress Residential purchased thousands of homes.

As of June 2022, institutional investors controlled about 450,000 homes – about 3% of all single-family rental housing in the country.

Since Trump's first term, housing prices in America have risen by 75%, twice the rate of overall consumer price inflation.

• Last week, the Federal Housing Finance Agency reported that prices rose just 1.7% in October from a year earlier, the lowest rate in more than 13 years and nearly ten times lower than the 2021-2022 peak of 20%.