There are a number of reasons housing costs have risen so dramatically in recent years. There is the basic rule of supply and demand–when you allow millions of people to enter the country illegally, the cost of everyone’s housing increases. Also, when large corporations buy up blocks of houses, the cost of renting or buying increases. President Trump has decided to address these issues. The first issue was addressed when the border was closed and the illegals were deported. The second issue is currently being addressed.
On Tuesday, Just the News reported:
President Trump has filled the first half of his second term instituting legacy-establishing policies and agendas, but a new measure restricting real estate investors may be his biggest legacy yet, according to Bill Pulte, director of the Federal Housing Finance Agency.
On Thursday, the Treasury Department proposed a rule implementing elements of the 21st Century ROAD to Housing Act. Starting January 7, 2027, investors controlling at least 350 single-family homes generally can’t buy more unless an exception applies.
“This is going to be one of President Trump’s biggest legacies in terms of making sure that the American people are reflected in their own communities. And I think you’re going to see it happen here in the next 6, 12, 18 months,” Pulte predicted in an interview on the “Just the News, No Noise” TV show.
Pulte, who also chairs Fannie Mae and Freddie Mac, continued, “But you’re also going to see it for, you know, 5, 10, 15 years from now. He’s forever changed the makeup of the nature of American neighborhoods by not allowing corporations to dominate our subdivisions.”
The exceptions to the new rule include newly built homes bought within 18 months of completion and renovate-to-rent deals where investors fix code violations. Violations could cost from $1 million to as much as three times the home’s purchase price. Treasury Secretary Scott Bessent has touted the rule as a booster to homeownership for working families.
The article concludes:
The postwar era built the modern American dream. Homeownership jumped to 55% in 1950 and 61.9% by 1960, powered by Federal Housing Administration and Department of Veterans Affairs mortgages, and Levitt & Sons borrowed auto assembly-line methods to build up to 30 houses a day. By 1960, a quarter of the nation’s housing stock hadn’t existed a decade earlier.
That boom excluded many: The FHA and VA kept redlining, denying mortgages to black and other minority buyers, and no federal law banned housing discrimination until the Fair Housing Act of 1968.
Mortgage rates hit the mid-teens in the early 1980s, and recessions plus high rates pushed homeownership down to 63.8% in 1986. Rates then fell steadily, and ownership peaked at 69% in 2004. Prices peaked in early 2005, and rising foreclosures set off a crisis that rippled through Wall Street, banking, and homebuilding. Homebuilding fell dramatically after 2008, a slowdown many link to today’s shortage.
I lived in a Levitt house as a young child when my father returned from World War II. My parents being able to buy that house as their first house made possible some very nice houses later on.