President Donald Trump says he's taking steps to ban large institutional investors from buying single-family homes.
In a social media post on Wednesday, the president blamed the tight housing market on Democratic policies.
"Because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans. It is for that reason, and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it," the president wrote.
President Trump said he would share more details about the plan in an upcoming speech at Davos in Switzerland.
Sen. Bernie Moreno (R-OH) said Wednesday he planned to introduce legislation that would make those new protections law.
RELATED STORY | It now takes 7 years for the average household to save for a down payment
The affordability of housing has remained a core economic concern for owners and potential owners.
Saving for a home has become a marathon, not a sprint, as prospective buyers now need an average of seven years to accumulate enough money for a typical down payment, according to new analysis from Realtor.com.
That seven years represents a drastic improvement from the recent peak of 12 years back in 2022 when home prices surged and savings rates plummeted. However, that seven years is roughly double the pre-pandemic norm.
A separate study from the same group recently found an overwhelming majority of young adults ages 18 to 27 believe buying a home is more difficult now than it was for previous generations.
82% of adult Gen Z homeowners or hopeful homebuyers said it was harder for them to buy a home than it was for previous generations.
Sen. Elizabeth Warren (D-MA), who has championed affordability for years, said she wanted to see president Trump move his plan forward.
"Enough talk – Trump should start with getting his own party in the House to support a bipartisan bill to bring down housing costs that passed the Senate unanimously. And Congress should work on legislation to stop corporate investors from buying up homes."
