"Treasury Secretary Scott Bessent said that President Donald Trump's proposal to keep Wall Street players from buying single-family homes would not force them to sell their current holdings. "These big institutions buy housing, then rent them out, and they're able to depreciate it. They hide their earnings, pay lower taxes," he said on Thursday at the Economic Club of Minnesota. "The idea here is bygones are bygones," Bessent added. "We're not going to have a forced sale here.""
"On Wednesday, Trump said he would ban institutional investors from purchasing single-family homes in an effort to make housing more affordable for Americans. Single-family homes refer to standalone residential buildings with their own entrance designed for one household. Shares of asset manager Blackstone fell 5.6% on Wednesday after Trump's post. Blackstone, which manages $1 trillion in assets, oversees one of the largest rental housing portfolios in the US, with several hundred thousand single-family homes and apartments. Other stocks similarly fell."
The proposal would ban institutional investors from purchasing single-family homes while exempting existing institutional holdings from forced sale. Large investors purchase homes to rent them out and use depreciation and other mechanisms that can lower reported earnings and taxes. The move aims to make single-family housing more affordable for households, particularly younger Americans. Asset manager Blackstone and similar firms saw immediate market reactions, with share declines after the announcement before some recovery. Critics blame institutional buying for reducing supply and raising prices, while institutional players attribute price growth to an overall lack of housing supply.
Read at Business Insider
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