JACKSON, NJ – A declaration by President Donald Trump could have a trickle down effect in towns like Jackson Township, New Jersey where shadow LLCs are buying up properties at record levels and turning single family homes into multi-family apartment complexes.
While Trump’s proclamation does not appear to target these local LLCs, depending upon how the law is written, it could include such shadowy business entities.
Trump announced Wednesday that his administration will move to prohibit large institutional investors from purchasing single-family homes, saying the measure is aimed at restoring homeownership opportunities for working- and middle-class Americans.
While there’s no exact, real-time tally for Jackson, NJ, LLC homeownership is a significant issue, with at least one in four homes sold to LLCs in some NJ towns, and a general NJ trend showing LLCs owning over 72,000 homes statewide by 2021, indicating a considerable presence of corporate-owned investment properties in Jackson, driving local concerns about rentals and property upkeep.
In a social media post, Trump said he will “immediately take steps to ban large institutional investors from buying more single-family homes,” and called on Congress to codify the measure into law.
“People live in homes, not corporations,” Trump said, arguing that corporate ownership has priced out millions of would-be homeowners amid what he described as “record high inflation caused by Joe Biden and the Democrats in Congress.”
The president said he plans to outline more details of the proposal, along with other housing affordability initiatives, during a speech at the World Economic Forum in Davos later this month.
The move targets large investment firms and private equity groups that have increasingly bought up housing stock across the United States, often turning single-family homes into rental properties. Advocates for tighter housing regulations say such practices have contributed to a shrinking pool of affordable homes and rising prices in many regions.
Trump’s announcement drew immediate market reaction — shares of Blackstone, one of the nation’s largest private equity firms involved in residential real estate, fell more than 5% following the statement.
Analysts say that while curbing institutional purchases could ease competition for some buyers, the broader impact on home prices may depend on accompanying policies to boost supply.
