The White House Ban On Corporate Ownership

The Republican party is known for being conservative, fiscally conservative, socially conservative, religiously conservative, and so on. The latest salvo from the White House is to ban large institutional investors from gobbling up single family homes.

Conservative values are based on free markets. The solution to the cost of housing is not to artificially reduce demand. Imagine for a moment that government stepped in to reduce the cost of a burger at McDonalds by barring people above a specific income level from buying a Big Mac. The assumption is that the price of housing or a Big Mac is based on supply and demand. By crushing demand, houses will become more affordable all of a sudden?

The problem is that the input costs for a Big Mac have gone up and McDonalds is not going to sell burgers at a loss. The same is true in housing. Builders want to build affordable homes. But their input costs are preventing that from happening.

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