US wants to ban Wall Street & institutional buyers from buying single-family homes

Wall Street didn’t just “buy the dip” after the housing crash, they bought neighborhoods.

Wall Street didn’t just “buy the dip” after the housing crash - they bought neighborhoods.

After 2008, large investment funds started purchasing huge numbers of single-family homes, especially in markets hit hard by foreclosures. Instead of flipping them, many turned them into long-term rentals. That shift helped create a new normal: more homes owned by institutions, more renters competing for the same houses, and fewer starter homes available for everyday buyers.

Some people argue this added capital stabilized neighborhoods and renovated distressed properties. Others say it squeezed first-time buyers and pushed rents higher.

Wall Street institutions including Blackstone have bought up thousands of single family homes since the financial crisis of 2008 led to a wave of home foreclosures. The trend has attracted criticism from housing advocacy groups and lawmakers, including Democrats, who claim institutional landlords have stoked rent inflation.

Homebuilder shares dropped sharply in the wake of Trump's comments. American Homes 4 Rent dropped to a near three-year low of $28.84 and was halted for volatility. Its shares were last down nearly 6% at $30.56.

#WallStreetLandlords #SingleFamilyRentals #HousingCrisis #RealEstateTrends #HousingAffordability