There will be no way to enforce this such that “Wall Street” can’t easily get around it, so it is clearly for show and not an actual attempt to solve a problem.
US will ban Wall Street investors from buying single-family homes
121–130 of 1001 posts
Re: US will ban Wall Street investors from buying single-family homes
#122Even if this goes through without a mountain of loopholes and exceptions, I doubt it will have a significant impact. "Wall Street Investors" implies they're targeting large institutional ownership, which is only around 0.5% of housing ownership as cited in the article. That number is also flat-ish or maybe decreasing depending on the chart you look at, from what I recall. Outside of a few metro areas where institutio…
Making it hard for cities to deny all permission to build new housing through impossible zoning laws should also be on the cards.
Yeah, all the politicians talking housing— the actual net governmental effect on housing is to massively constrain supply (quantity) in service of rather arbitrary qualitative standards. I’m all for “the building shouldn’t spontaneously collapse” standards, but … two acre lots? Restrictions on casting shadows? Accessory dwelling units? Nah. If the government wants to make a difference it should ban Euclidian zoning as it currently is practiced, full stop.
Re: US will ban Wall Street investors from buying single-family homes
#123idk how this would work effectively. There's lots of affordable homes they're just located where no one wants to live. You'd have to focus on HCOL locations and make them not so high cost which seems something that should be done at the local level. You can increase supply but investors would just snatch them up. Maybe the feds could put a cap on the value of a single-family home that an institution can own and then…
Just tax non primary residences at a much higher rate. Housing crisis solved.
Re: US will ban Wall Street investors from buying single-family homes
#124The key word here is "Wall Street". And this statement is playing off a popular misconception around corporate investors buying up American houses. There has been a bit of a panic around "Investors buying up all the property!!!" With people often citing Black Rock and Blackstone as the main culprits. But most of the "investors" buying up property are individuals purchasing investment properties. Here's an article on…
It might not solve the problem but we also have other countries buying up homes for pension accounts. Take AU for example doing this. Should be illegal regardless of the size.
Re: US will ban Wall Street investors from buying single-family homes
#125Earlier quoted context omitted.
If they cannot be resold to other speculators their price can go waaay down
The vast majority of home purchases aren't from speculators or institutional investors. Institutional investors only own about 0.5% of homes. If they're forced to stop buying, nothing will really change in a noticeable way. At best, small landlords and investors will scoop attractive properties up for slightly less.
> Institutional investors only own about 0.5% of homes
Where they buy those homes matters though. In areas with lots of jobs/growth (often the areas experiencing the most housing price pain), that number is likely much higher.
Re: US will ban Wall Street investors from buying single-family homes
#126The key word here is "Wall Street". And this statement is playing off a popular misconception around corporate investors buying up American houses. There has been a bit of a panic around "Investors buying up all the property!!!" With people often citing Black Rock and Blackstone as the main culprits. But most of the "investors" buying up property are individuals purchasing investment properties. Here's an article on…
This is absolutely, violently, incorrect.
Private equity has absolutely been buying up (and building) U.S. residential stock, and this is addressing a real problem. The fact that Trump's doing it doesn't change my opinion at all, but it's absolutely the right thing to do and hopefully will be bipartisan.
Re: US will ban Wall Street investors from buying single-family homes
#127This is another non-solution from Trump. Similar to the "no taxes on tips" nonsense that applies to almost no one since the cap is so high. It's a populist move that doesn't address the problem but appears to be a good thing for working class people at first sight.
Re: US will ban Wall Street investors from buying single-family homes
#128The key word here is "Wall Street". And this statement is playing off a popular misconception around corporate investors buying up American houses. There has been a bit of a panic around "Investors buying up all the property!!!" With people often citing Black Rock and Blackstone as the main culprits. But most of the "investors" buying up property are individuals purchasing investment properties. Here's an article on…
While that’s true, even if “Wall Street” is only holding a few percent of homes, those being released to the markets (and future ones not being purchased) might help.
Corporate entity creation in America is such that I don’t think this will be enforceable (“we don’t buy homes, our Gibraltar office’s subsidiary invested in its CEO’s LLC that bought the home”) but if I’m wrong, it could help somewhat.
It’s binary thinking to assume that just because it isn’t a one step solution it won’t make a meaningful impact. But still, I think it won’t yet hope I’m wrong.
Re: US will ban Wall Street investors from buying single-family homes
#129Even if this goes through without a mountain of loopholes and exceptions, I doubt it will have a significant impact. "Wall Street Investors" implies they're targeting large institutional ownership, which is only around 0.5% of housing ownership as cited in the article. That number is also flat-ish or maybe decreasing depending on the chart you look at, from what I recall. Outside of a few metro areas where institutio…
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Re: US will ban Wall Street investors from buying single-family homes
#130Investor owned housing is a bit of a sensationalist scapegoat. Publicly traded companies account for a tiny, tiny fraction of available single family homes in the US. And so long as the tax code doesn't change, it strongly favors private/individual homeowners, and corporations only account for the margins where housing appreciates so fast or rental incomes are disproportionate to asset values. This is an easy thing f…
regarding public reits focusing on blackrock misses the Vancouver Model dynamic which is absolutely happening in major us markets. the issue isn't just yield-seeking corps, it's opaque shell companies (llc) using real estate as a store of value aka money laundering vehicle. vancouver showed how this decouples prices from local wages completely. the us has this exact vulnerability—anonymous delaware/wyoming llcs buyin…
> this only works because of zoning
The dynamics in the countries that don't have zoning is exactly the same. Price bubble and misery for everyone in dense cities.
There will be no affordable housing in cities, whatever you do, short of nuking everything from the orbit.