alt Hacker NewsUS will ban Wall Street investors from buying single-family homes
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The title change here is editorializing. It’s not a given that this will be implemented and the original title reflects that: “Trump threatens to ban Wall Street investments in single-family homes”.
my first reaction was that the counter in the top right seemed like a really low number, but i think i was interpreting it wrong - that's the number of rides in progress, not a cumulative counter for the day, right?
How about we stop companies from buying up properties to turn into airbnb/short term rentals, unless its a company that flips homes. Those we need.
This is good for homeowners. Bad for renters.
Why? Housing prices will rise, rents will rise.
"Houses are for living, not for speculation" spreads to the Imperial Core
A lot of people live in apartment complexes and this won't cover those.
Corporations are people under the current SCOTUS interpretation. Which means they have the same rights under the US Constitution, so this should be struck down in no time in the courts. Another nothing burger likely to end up just manipulating the equity market and the derivative markets in the short term for large investors to capitalize.
Just build more housing, the whole "let's make rules to avoid the easy and obvious solution" trend annoys me.
I feel the numbers that show investment groups that own X number of homes is highly misleading. More than likely these investment groups form multiple companies when they buy up the homes. Likely state or regional. From there the larger parent company is invested. So I wonder if there are hundreds or thousands of "small" investment groups that are essentially a shell for a larger private equity group.
So my big worry is that the Trump admin will say they are going to only eliminate the most obvious cases and the problem will remain. The LLCs and shell corps, etc.
EDIT: Also it does not address the massive amount of housing stock that is foreign owned by people that don't even live in the country.
Stupid populism. Homeownership is bad policy, and I welcome private equity buying it all so we are finally disabused of it.
(Of course, they were not buying it all.)
Seems reasonable to me, a very anti Trump individual. Now deliver.
And which of his buddies does this benefit?
I'm trying to think if there will be ramifications to this...
- Obviously forced divestment of all Wall St owned single family homes could impact housing prices which is both the point, but of course... also hurts many families borrowing power and net worth
- I guess that crash could potentially have people paying lots of money for homes that aren't worth that much anymore, which sounds pretty negative
- Of course... wow, would it be nice to be able to afford something in the city I love (which I doubt will be impacted by this)
Of course, no clear plan here. Just Trump saying something, why wasn't the "Trump says" part kept in the headline here?
Hopefully this happens so people can stop blaming institutional investors for high home prices once this fails to work. Then maybe we can work on actually building homes.
Why is it as a soon as a politician announces they will start in the future to have a concept of a plan at tackling an issue, many people react as if it’s already done?
No actual implementation steps have been taken or explained. Will this happen before or after the health care plans are released? Before or after the still pending infrastructure bill?
“ Trump said he was immediately taking steps to implement the ban, which he would also call on Congress to codify in law. *It was not clear what steps he would take*”
It was not immediately clear what legal authority Trump would draw upon to impose such a ban on the private market purchases of houses. Trump did not detail the policy, the form it would take or the legal changes he was seeking from Congress.
The White House did not immediately respond to a request for comment. The U.S. president was due to sign unspecified executive orders later on Wednesday.
Anyways, I thought that issues with Americans being able to afford things like housing was all a hoax made up by Democrats?
Why craft policies to address a made up issue?
Housing simply cannot be both an investment AND affordable.
As usual, the US continues to do everything possible about the housing shortage except actually building enough housing.
They should just increase the taxes on rental income to make it less profitable. It's too easy to be a bum landlord.
Trump will get the boss call from Jamie Diamond or any of his other donors and quietly drop this, or sneak in a loophole big enough to walk an elephant through.
Seems like a good start. Then ban this as an asset class for scale investors so they have to release existing inventory.
I get that title length is limited, but the "Trump Says" in the title is a pretty significant detail. He "says" things all the time.
I have this idea where we pick a desert road as long as possible (maybe road 50 Nevada) then build a 50 000 metric ton machine that makes large rammed earth houses. Perhaps make a mold the shape of a Ferris wheel. Have it stamp out 200 homes per week (2 miles) Road 50 is 400 miles so 200 weeks.
Rammed earth is a very decent building material but if you make the walls thick and compress it hard enough (maybe add steam?) it will last hundreds of years. Other building methods should be considered ofc domed roofs are perhaps not cool enough.
Disassemble the machine, ship the containers and deploy it some place else.
Add some killer features to the homes so that people cant wait to live there. For the first 400 miles at least $30 billion comes out (over 30 years) or $15 bl per year for each year of construction. Should be good enough for investors.
If it works, build additional improved versions. Aim for a factory that makes these machines.
Something like a sane version of the line.
Something like this only 20 times larger.
https://www.youtube.com/watch?v=cKi8VWRDA_c
Something like this but moving.
How does this affect Arrived?
What about REITs!? They are a crucial source of portfolio diversification!
Great news!
"US will ban" More like Trump said today that he will try to ban...TACO and all
Um… banned by what authority? I fail to see how this is legal. Same as banning obese people from buying cookies
Believe it when you see it folks. No sooner.
There goes my home value
This headline is wrong. It’s just something Trump said and any mechanism to do this seems dubious at best. The entire idea is likely unconstitutional.
There is a conservative case for this in that the 30 year fixed mortgage, combined with all of the foreclosure protections both old and new, amount to a government benefits program. Historically, this type of mortgage was developed to promote family homeownership. The mortgage systems have continually blown up in "crises" in part because it's a product of policy more than it is a market product. This is partly why investors both corporate and small flipper types actually do cause serious distortions: the US housing market is a welfare program first and a market for bundled land and houses second.
No one wants to abolish this welfare program (you would have an easier time abolishing Social Security), but also the government wants to keep the trappings of a market price system. It is easier to have serial crises and to blame some guys for the predictable explosions every time, adjust the laws to create enormous numbers of lawyer billable hours nationwide, and then set the stage for the next crisis and the next round of patsies to be blamed. Fortunately, this time we have AI to write all the think pieces about what it really means.
Anyone want to bet that this will cause the Second Order effect of no more new single-family homes being built and instead move more and more future development into co-living dwellings.
Given this, it’s inevitable - the New American Dream will be communal living.
The TechBros currently run the country, so I don't buy into anything the current government does in regards to Average Joe, including family homes.
Just build more homes. JUST BUILD MORE HOMES.
Ironic this coming from the king of scummy landlords
Corporations can build their own buildings and rent them out, keep them out of the second hand market.
Does wall street investors include private equity? i thought i was pretty sure that is most of the problem, but maybe i am wrong.
Either a) this is window dressing and nothing material will change or b) there's a housing crash coming.
> "People live in homes, not corporations," Trump said.
Very surprisingly progressive opinions from Trump.
I do completely agree though, the consumer surplus of housing should be captured by people. Not investors looking to profit.
It's extremely toxic to society when investors get to eat the utility of housing.
Even if their negative impact is a fantasy, they provide no benefit. There is no reason we shouldn't ban them.
the carve outs will be insane and defeat the whole point
absolutely, easily predictable
what should be a one page bill will have riders of insanity
they'll probably do it like they do with corporations having more than 15 employees, so every little business just has 15 people contracting out to the next business with 15 people etc., there will be a corporation for every 15 houses etc.
how is this going to help when they already own it and new housing is built at a snail's pace? investors pulling up the ladder behind them
not that I expect it to even happen at all
Reuters taking the regime seriously is weird.
Interesting that Blackstone stock is the same as a week ago. Either this can't be done, or it can be done and they're exempt, or it will be reversed.
title of post is "US will ban", title of article is "Trump threatens to ban". OP why are you misleading people?
Actual title: "US will ban Wall Street investors from buying single-family homes, Trump says"
Trump, notoriously, says all sorts of things.
I'm sure this'll come right after he finishes his healthcare plans in "two weeks".