A new order set by Trump plans to ban corporate home purchase, but it may be leaving more questions than answers.
On January 21 President Trump announced that institutional investors were primarily responsible for amplifying home prices. Specifically, large corporations purchasing single-family homes that he describes as unfair to the public.
The executive order and what it means
The main action that this executive order directs is the Federal Trade Commission and Treasury Secretary to further examine and emphasize the unfairness of institutional investors inherently driving up the prices of single-family homes. A quote by Trump covered by Real Estate News emphasizes, “America will not become a nation of renters.”
Trump is also interested in setting a new precedent to allow home owners to depreciate their homes to receive tax deductions claims. Which would be a difference from the current status that home owners cannot depreciate their homes when a corporation has bought it
However, is this the way to mitigate the housing crisis?
An interview with housing expert Caitlin Gorback stated that as of 2022 only 3% of single family homes and townhouse units were owned by big investors.
Therefore, although this option may provide relief to areas where big investors play a larger role in single family home ownership such as Atlanta, Phoenix, and Charlotte, the effect of this executive order will likely be much smaller in scale than anticipated.
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