Donald Trump takes BIG decision, signs order to block large investors from buying small homes in US, first-time buyers to…

New Delhi: In a significant development, US President Doland Trump on Tuesday signed an executive order aimed at preventing big institutional investors from purchasing single-family homes. As per a Bloomberg report, the US president signed the order before leaving to attend the World Economic Forum in Davos, Switzerland. It is important to note that the order has not been implemented yet, and currently there are no such restrictions on companies. A single-family home generally refers to a house designed for one family to live in.

As per the order, the Treasury Department has one month to define what constitutes a “large institutional investor” and a “single-family home.” The government will consider the mechanisms for implementing the order within 60 days.

US President Doland Trump, in the order, said that the hardworking young families cannot compete with Wall Street firms and their vast resources. He added that middle-class American families once ran cities and communities, but now companies have taken over. “People live in homes, not companies,” he said.

ALSO READ: ‘I wasn’t given the Nobel Peace Prize hence…’: Doland Trump goes ballistic over several big issues

Here are some of the benefits of the order:

• The US government will formulate policies to encourage the sale of individual owner-occupied homes.
• The Justice Department and the Federal Trade Commission (FTC) will conduct antitrust reviews of significant acquisitions made by institutional investors in the housing market.
• Doland Trump had earlier announced that he would bring an order on this issue.
• The S&P 1500 Homebuilding Index has seen a sharp decline.
• This includes companies like Blackstone Inc., which has recently expanded its real estate portfolio.

In an interview to Fox Business in Davos on Tuesday, Treasury Secretary Scott Bessent said only the largest real estate investors would be targeted. He said this would not cause problems for ordinary people. Young people are struggling to buy homes. The National Association of Realtors reported in November that the average age of first-time homebuyers has increased to a record 40 years.