The White House is stepping up efforts to implement President Donald Trump‘s proposed ban on investors buying homes.
A memo outlining the plan has been sent to House and Senate committee leaders, targeting investors who own more than 100 single-family homes and restricting them from acquiring additional properties, The Wall Street Journal reported on Thursday.
The President’s plan could lead to hundreds of investment firms losing the ability to purchase single-family homes. Nonetheless, the proposal includes certain exemptions from the ban, especially for investors who build or significantly renovate homes solely for renting them out.
The proposal allows the Treasury Secretary to adjust the criteria for large institutional investors, with Congress needing to review and approve amendments before the Senate and House reconcile their housing bills.
Trump is expected to discuss the proposal in more detail during the upcoming State of the Union, according to the publication.
White House did not immediately respond to Benzinga‘s request for comment.
Experts, Democrats Question Impact
The move comes after Trump’s proposal to ban Wall Street investors from purchasing single-family homes faced a setback in Congress and was not included in the final Housing Bill.
House Rep. French Hill (R-Ark.), the Chairman of the House Financial Services Committee (FSC), and other key Republican lawmakers declined the White House’s request to add the investor ban as an amendment to the Housing for the 21st Century Act, citing timing issues and ambiguity.
Meanwhile, some Democrats are resisting Trump’s proposal, citing excessive exemptions and the lack of a requirement for investors to sell existing properties.
Experts such as Jina Yoon, Chief Alternative Investment Strategist at LPL Financial say Trump’s proposal may have a limited impact, as individual investors, not large institutions, primarily drive homebuyer competition; institutional investors own just 0.5–3% of U.S. single-family homes, mostly in select markets such as Atlanta, Phoenix, and Charlotte, with much activity exempt under the executive order. A previous report by Blackstone (NYSE:BX) also highlighted the same.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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