President Trump urged Congress to bar large institutional investors from buying more single-family homes, a proposal that surprised some Republicans and sent homebuilder stocks lower. The idea, long associated with Democrats, is expected to face strong opposition from Wall Street. GOP leaders such as House Financial Services Chair French Hill and Rep. Mike Flood say they need details before weighing in, while some Republican senators have voiced support. Politico reports the plan may be included in a broader executive order.
Trump Calls To Ban Institutional Buyers Of Single-Family Homes, Surprising Some Republicans
President Donald Trump on Wednesday urged Congress to pass legislation banning large institutional investors from buying additional single-family homes — a move that surprised some Republican lawmakers and rattled homebuilder stocks.
The proposal, historically championed by Democrats, is expected to face fierce opposition from Wall Street and institutional investors who have been active in the single-family rental market.
House Financial Services Chair French Hill (R-Ark.) told reporters the plan "can mean a lot of different things" and said he did not want to provide an off-the-cuff response until details are available.
"That’s why I don’t want to generalize and give an impromptu answer," Hill said.
Rep. Mike Flood (R-Neb.), who chairs the House committee’s housing panel, echoed that sentiment, saying he wants to review the president’s proposal before taking a position. "The good thing here is that our nation’s chief executive is identifying housing as one of the big issues of this Congress," Flood added.
Meanwhile, some Republican senators were quicker to signal support. Politico reported the White House plans to include the measure as part of a broader executive order.
What’s next: Lawmakers on both sides of the aisle will likely press the administration for specifics on the scope and enforcement mechanisms of any ban, while market participants and investor groups prepare for a potential legal and political fight.
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