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What a Trump proposal to ban institutional investors could really mean for homebuyers
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ABC17NEWS
Michael Vi // ShutterstockPresident Trump has teased a plan to ban large institutional investors from purchasing single-family homes.
There was a frenzy of investor purchases during and immediately after the COVID-19 pandemic due to cheap capital, low interest rates, and attractive returns.
The buyer cohort that stands to benefit the most from sideling investors is first-time buyers.
First-time buyers could benefit from less competition from investors who have more equity or cash than the typical first-time buyer.
NewHomeSourceBig PictureWhile the proposed ban on investors may offer symbolic relief to the housing market, solving the affordability crisis will require solutions beyond addressing roughly 5% of the for-sale market.