Why Blaming Wall Street Won't Fix the Housing Crisis

The housing crisis in America is real, and people are looking for someone to blame. President Donald Trump has pointed his finger at Wall Street, suggesting that big investors are the main reason homes are so expensive. He's proposed banning these investors from buying single-family homes and having the government buy mortgage bonds to lower interest rates. But is Wall Street really the problem? First, let's talk about the supply issue. America needs about 4 million more homes to make housing affordable again. Banning big investors won't create more homes. In fact, large institutional investors only account for a tiny portion of the market. Most real estate investments come from small landlords, not Wall Street firms.Trump's other idea is to have the government buy mortgage bonds. This might lower interest rates, but it won't increase the housing supply. Plus, it won't encourage people to sell their homes and move, which is a big part of the problem. So, what can be done? Experts say the government needs to create incentives for state and local governments to build more homes. This means streamlining permits and allowing more dense housing. It's not as exciting as blaming Wall Street, but it might actually work.