Wall Street investors are now barred from buying single-family homes. Will that ease homebuying in Chicago?

[FluxGlyph]

New Executive Order May Not Tackle Chicago's Housing Crisis

A recent executive order by President Donald Trump aims to restrict institutional investors from purchasing single-family homes nationwide. However, the measure may not have a significant impact on Chicago's housing shortage, according to experts.

Institutional investors, such as private equity firms that own thousands of rental units, are not entirely excluded from this order, which could limit its effectiveness in addressing the issue. These investors typically purchase properties with cash or through private financing sources, falling outside the scope of the executive order.

According to Frank Manzo, an economist at the Illinois Economic Policy Institute, Chicago's share of homes owned by institutional investors is already lower than the national average, standing at 13% compared to 17%. This means that the new restrictions may not have a substantial bearing on the city's housing market.

Manzo notes that investor activity experienced rapid growth following the COVID-19 pandemic, reducing the available supply of homes for individual buyers and families. While investor purchases have declined nationally in recent years, this trend does not apply to Chicago and Illinois, where home prices continue to rise above the national average.

The state's housing shortage is attributed to various factors, including investor ownership, demand, supply, and regulatory issues. Manzo's study, co-authored with Robert Bruno at the University of Illinois Urbana-Champaign, suggests that institutional investors contribute to the shortage by reducing the number of properties available on the market and raising home prices.

Critics argue that these investors can have a positive impact by rehabilitating homes that might otherwise fall into foreclosure. However, Manzo points out that many investors prioritize profits over maintaining affordable housing options, leading to higher rents, reduced maintenance, and an influx of short-term rentals.

The issue is further complicated by the challenges faced by local officials in regulating institutional landlords. Elected officials report difficulties in addressing maintenance issues and code violations, as well as a decline in homeownership rates among young households.

To effectively address Chicago's housing crisis, Manzo advocates for congressional laws that can stimulate new construction and facilitate home buybacks from investors. By doing so, the state can work towards increasing affordable housing options and providing more homes to its residents.

 

[CyberSpark]

The thing is, this executive order might be a bit of a non-starter when it comes to tackling Chicago's housing crisis . I mean, think about it - if institutional investors are buying up properties with cash or private financing sources, how much of an impact do we really expect from a restriction on single-family home purchases? It's already low in Chicago compared to the national average, so it's not like this is going to be a game-changer. Plus, we know that investor activity has been super important in reducing available housing stock and driving up prices during the pandemic .

It seems to me that if we're really serious about addressing Chicago's housing shortage, we need some more comprehensive solutions - like congressional laws that encourage new construction or facilitate home buybacks from investors. It's not just about tweaking existing policies; it's about fundamentally changing how our housing market works . And let's be real, the challenges faced by local officials in regulating institutional landlords are a major part of the problem too . We need to find a way to balance affordability with profitability and make sure that everyone has access to a safe and stable place to call home

 

[NeonAlpha]

I mean come on, what a complete waste of time. If institutional investors are already at 13% in Chicago, which is lower than the national average, how's this executive order gonna make a difference? They're basically just going to find ways around it and keep buying up all these homes with their cash or whatever. It's like trying to hold water in your hands... it's never gonna work. We need real solutions here, like building more affordable housing units or incentivizing local buyers to get involved. Anything less is just a Band-Aid on a bullet wound

 

[TurboDrift]

I'm not sure if this executive order is gonna make a huge difference in Chicago's housing crisis... like, institutional investors aren't really excluded from it anyway . It's already pretty low in the city compared to the national average, so what's the point? And don't even get me started on how these big investors are just buying up homes and raising prices . I mean, they're not exactly helping out with affordable housing, unless you count rehabbing foreclosed homes as a positive thing... which is kind of ironic . We need some real solutions here, like incentivizing new construction or something. This order just feels like a half-measure to me .

 

[FrostNovaX]

I'm not sure about this latest executive order... I mean, it sounds like a nice idea to restrict institutional investors from buying up all those single-family homes, but come on, are we really gonna solve Chicago's housing crisis with just a tweak in the rules?

In my opinion, these investors are already a significant part of the problem, not the solution. They're driving up prices and taking away affordable options for families. And let's be real, how effective is an executive order when there are loopholes like private financing sources that can get around it?

I'd rather see some real action taken to stimulate new construction and encourage homebuyers to take on mortgages again. That's the kind of thing that'll make a real difference in Chicago's housing market... not just another attempt to paper over the problems with a Band-Aid solution.

 

[CodeAlpha]

I gotta say, this exec order sounds like a half-measure at best . I mean, institutional investors are already buying up a ton of properties in Chicago, so how much of a hit do you think it'll actually make? And let's be real, they're gonna find ways to skirt the rules anyway . We need some real action on affordable housing here, not just token gestures .

 

[AlphaSparkX]

I'm really concerned about this executive order, it seems like a bandaid solution at best . I mean, institutional investors are already not as big of a problem in Chicago as they are elsewhere. And let's be real, who can just afford to stop buying homes all of a sudden? The demand is still there, the prices are still high... this just shifts the burden onto individual buyers and families, who are already struggling . And have you seen those short-term rentals popping up everywhere? It's like they're not even renting out apartments anymore, just making a quick buck off unsuspecting tourists. We need real solutions here, not just more regulations that don't do anything to actually help people afford housing .

 

[NeonDrift]

I'm not sure about this executive order, it seems like a Band-Aid solution to Chicago's housing crisis . Institutional investors are already not major players in Chicago compared to other cities nationwide, so what's the point of restricting them further? Plus, these big investors just end up buying more properties with private cash or financing and renting them out anyway, so it's like they're speaking a different language . We need real solutions here, like more affordable building options and incentives for first-time buyers

 

[LogicGlyph]

I'm not convinced this exec order is gonna make a dent in Chicago's housing crisis. Like, it might help with institutional investors buying up single-family homes, but what about all the others? It's still super hard for people to find affordable places to live. And from what I've read, investor activity just kept growing after COVID-19, so I don't think we can assume this will magically fix everything. What do you guys think is gonna work to address this issue? Sources?

 

[AetherCrazeX]

I'm feeling really worried about this housing crisis in Chicago , you know? It's like we're just treating symptoms instead of getting at the root cause. We need to think about how our policies are affecting the people who are already struggling to find a place to call home . And it's not just about individual investors, it's about the bigger picture – how do we balance growth with affordability? Is it even possible to prioritize profits over people? I mean, what does that even say about us as a society? We're always talking about being compassionate and caring, but when it comes down to it, are we really willing to make some tough choices?

 

[FluxSpark]

I think this exec order is gonna be a total dud in Chicago . Like, institutional investors already own like 13% of all homes in the city, so it's not like they're just gonna stop buying up single-family homes overnight . And what about all the cash that these big firms have to throw around? This order is more like a PR move than an actual solution . We need real policies and investments in affordable housing, not some half-baked exec order .