Rebel Capitalist News

You Won't Believe Trump's New Solution To High Home Prices

8 snips
Jan 7, 2026
Discover Trump's bold new housing proposal aimed at banning large investors from buying single-family homes. Delve into the debate on whether this move is a form of central planning. Explore the implications of the 'seen and unseen' economic framework and consider whether investor purchases truly drive up prices. Unpack how supply shortages and high input costs are critical factors in the housing market. Finally, learn why increasing market freedom might be the most effective long-term solution for addressing housing issues.
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INSIGHT

Trump's Proposal Is Central Planning

  • Trump proposes banning large investors from buying single-family homes, which George Gammon calls central planning rather than a free-market solution.
  • The policy focuses on visible effects without considering long-term trade-offs and unseen consequences.
INSIGHT

Seen And Unseen: Look Past Immediate Effects

  • Apply Hazlitt's "seen and unseen" to housing: short-term fixes can create long-term harms through overlooked trade-offs.
  • Ask if investor purchases are the core problem or if supply constraints and incentives are driving prices.
ADVICE

Prioritize Supply Over Demand Restrictions

  • Focus on why sellers won't list and why builders don't build instead of restricting buyers.
  • Prioritize supply-side reforms to increase housing availability rather than banning demand.
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