WSJ Opinion: Potomac Watch Why Is Trump Blaming Investors for High Housing Prices?
Jan 9, 2026
Alicia Finley, a Wall Street Journal columnist focused on economic policies, and Kim Strassel, known for her political commentary, join the discussion on Trump's blame of institutional investors for high housing prices. They dive into the actual impact of these investors on housing supply, revealing they own only a small fraction. The duo explores the true drivers of housing costs, like inflation and zoning laws, and analyze the political motivations behind blaming corporations. They also touch on New York's rent control challenges and the pitfalls of government intervention.
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Big Firms Are A Small Share Of Housing
- Large single-family rental firms own about 520,000 homes, under 1% of US housing supply.
- Small investors hold roughly 87% of rental homes, showing big firms are not the dominant force.
Rentals Stay In The Housing Stock
- Investor-owned homes typically remain in the housing stock as rentals rather than disappearing.
- Converting homes to rentals doesn't necessarily reduce available housing for others.
Tax Perks Aren't A Clear Driver
- Tax advantages for investor firms are small and not clearly driving purchases.
- Individual buyers enjoy significant tax benefits too, like mortgage interest deductions and capital-gains exclusions.