Trump signs order blocking Wall St from buying single-family homes

Investing.com-- U.S. President Donald Trump on Tuesday evening signed an executive order aimed at blocking Wall Street investors from buying and speculating on single-family homes.

Trump said the order was aimed at making home ownership more accessible for American citizens, and that he had ordered the Treasury and his economic advisors to work on implementing the mandate within 60 days.

Trump said the Department of Justice and the Federal Trade Commission will also review any “substantial acquisitions” by large investors of single-family homes.

“To preserve the supply of single-family homes for American families and increase the paths to homeownership, it is the policy of my Administration that large institutional investors should not buy single-family homes that could otherwise be purchased by families,” Trump said in the order.

The order comes as Trump attempts to address growing concerns among voters over the rising cost of living. The move also comes just ahead of the mid-term elections this year, where his administration will face its first major political challenge.

Trump had earlier this month ordered mortgage finance giants Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds to bring down house prices.

Wall Street asset managers such as Blackstone Inc (NYSE: BX) and American Homes 4 Rent (NYSE: AMH) were seen snapping up thousands of single-family homes since the 2008 financial crisis, which had sparked a wave of foreclosures.

This trend of corporate homebuying has drawn heavy criticism from American voters and the Democrats, who flagged mounting challenges for first-time home buyers in the country.

High mortgage rates and steep home prices are also seen as major barriers to home ownership in the United States.

The Democrats have on several occasions attempted, albeit unsuccessfully, to approve legislation that limits corporate home ownership.

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