Large consortiums will not invest in housing, Trump threatens

The president of the United States, Donald Trump, maintained that his government is taking measures to prohibit large institutional capitalists on Wall Street from investing in the purchase of homes, in an attempt to reduce their prices.

The move may be a blow to private equity funds, but it also put pressure on homebuilder stocks.

In a publication on his Truth Social network, the magnate wrote that he was already taking immediate measures and would ask Congress to legislate; He added that he will also discuss other proposals on housing and the cost of living in a speech at the World Economic Forum in Davos.

“For a long time, buying and owning a home was considered the pinnacle of american dream“Trump wrote, adding that inflation had put that dream out of reach for many Americans. “People live in houses, not corporations.”

Wall Street institutions like Blackstone have bought thousands of single-family homes since the 2008 financial crisis sparked a wave of foreclosures.

Increasing investment is in rental housing, which has performed better than other commercial real estate sectors, such as office and retail, during a period of rising borrowing costs and changing employment patterns.

Wall Street’s expansion into homeownership has drawn criticism from housing advocacy groups and lawmakers, including Democrats, who say institutional landlords have reduced the supply of homes and stoked rent inflation.

It was not immediately clear what legal authority Trump would use to impose such a ban on home purchases in the private market. The president did not detail the policy, the form it would take or the legal changes he sought from Congress.

The White House did not immediately respond to a request for comment.