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

Chicagoans may breathe a sigh of relief as President Trump's executive order aims to curb institutional investors from buying single-family homes, but experts say these landlords remain a contributing factor to the region's persistent housing shortage.

The recent order signed by Trump seeks to define and restrict institutional investors, while promoting sales to individual owner-occupants through first-look policies, disclosure requirements, and anti-circumvention measures. However, critics argue that this measure has limited teeth, as these buyers often purchase properties in cash or through private financing sources.

Chicagoans are among the few to benefit from this move, with the city's share of homes owned by investors at 13%, lower than the national average. Despite this, home prices and valuations in Chicago continue to outpace the nation. The number of investor purchases in the city has remained steady, indicating a continued need for alternative solutions.

The issue is not as clear-cut, however, with economists pointing out that institutional buyers are primarily private equity firms that own thousands of rental units. These investors tend to target "trendier" neighborhoods on the North and West sides, driving up housing costs for younger buyers who prioritize affordability over luxury.

While some argue that these investors provide much-needed services by rehabbing properties that might otherwise fall into foreclosure, research suggests that they often inflate rents, skimp on maintenance, and convert homes to vacation rentals. As a result, institutional landlords have become a significant obstacle to addressing the state's housing shortage.

To effectively address this issue, economists like Frank Manzo, who co-authored a study on Illinois' housing shortage, recommend more comprehensive solutions, such as congressional laws that would encourage new construction and facilitate home buybacks from investors.

I'm not sure if they'll actually get rid of these institutional investors but I do think it's a step in the right direction . Chicagoans are lucky to have lower rates than most places, so fingers crossed that it sticks. But for areas outside Chicago, like the North and West sides, it's a whole different story . Those private equity firms can be ruthless when it comes to driving up prices and making apartments into vacation rentals . I think more comprehensive solutions are needed, like incentivizing new construction or buybacks from investors . It's all about creating affordable options for the average person, you know?

omg what a mixed bag this executive order is ! I'm glad to hear that Chicagoans might see some relief with the reduction in investor-owned homes, but come on - it's still way too easy for these institutional buyers to shell out cash and get away with it . Like, if they're not gonna be transparent about their financing, what's the point? And don't even get me started on how these landlords are just exacerbating the problem by inflating rents and neglecting maintenance .

I mean, I get it that private equity firms can do some good with rehabbing properties and all, but the numbers just don't add up . All this talk about 'trendy' neighborhoods and 'affordability over luxury' is cute, but let's be real - these investors are still profiting off of people who can't afford to live in those fancy neighborhoods .

We need more than just a Band-Aid solution here, like Manzo says . We need systemic change and support for actual solutions, not just some token law that's gonna get watered down in Congress .

I'm not sure if this executive order is gonna make a huge difference ... I mean, sure, it's good to know those institutional investors are being targeted, but what about all the other landlords in Chicago? They're still out there, just doing their own thing . And from what I've read, these private equity firms are basically just flipping properties around for profit, without really caring about making homes affordable for people.

I think we need more than just a slap on the wrist here... like, have you seen the prices of homes in Chicago lately? It's crazy! And it's not like the problem is gonna magically fix itself just because some investors are being restricted. We need concrete solutions, like what Frank Manzo is talking about - new construction, home buybacks... that kinda thing.

It's all well and good to try and curb the power of institutional investors, but we can't afford to neglect other factors contributing to this housing shortage .

"The problem is not the problem. The problem is how you are thinking about the problem." - Charles Kettering

It seems like this executive order might be a good start, but we need to think bigger . We can't just target institutional investors; we need to tackle the root cause of our housing shortage – affordability . Maybe it's time for some innovative solutions, not just tweaking existing laws

I'm kinda mixed about this whole thing . On one hand, I get it, Chicagoans do need help with affordability and all, so if this executive order can give 'em a slight reprieve, that's cool, right? But on the other hand, these institutional investors are still just gonna keep popping up like weeds, even if Trump tries to restrict 'em. It's like they're just too smart for their own good . I mean, come on, who doesn't love a good cash deal? And let's be real, these private equity firms might be good at flipping houses, but that don't mean they're serving the community .

It's also kinda sad that we need laws to make institutional investors do their part. Can't we just have a system where everyone plays by the same rules? I guess that's just the realist in me talking .

I mean, come on, Trump thinks curbing institutional investors will solve the Chicago housing crisis? That's like saying taking away my Netflix subscription will help me focus on my studies... not gonna happen! These landlord types are still gonna find a way to cash in, whether it's through private financing or some fancy accounting trickery. And don't even get me started on these "trendy" neighborhoods – sounds like they're just code for "expensive" and "not affordable". I guess what we really need is more rent control and less of these profiteering investors, am I right?

idk how much of a difference this order is gonna make ... all these institutional buyers just use cash and private financing so it's like they're not even part of the market anyone think these landlords are actually helping with the housing shortage or are they just making it worse for regular folks?

I mean, can you believe Trump's trying to kick the real estate bigwigs out of Chicago? Like, good luck with that! I guess some folks will breathe a sigh of relief, but experts are all like "hold up, this won't solve anything". Those institutional investors are still gonna find ways to make bank off those single-family homes. And what's the deal with them targeting trendy neighborhoods on the North and West sides? Like, they're just pushing out young buyers who actually need affordable places to live! It's all a bit of a housing headache, if you ask me...

I gotta say, I'm still not feeling the relief vibe ... I mean, don't get me wrong, it's good that Chicagoans are getting a break on this front, but what about the rest of us? Like, what's gonna happen to affordable housing in other parts of the country? It seems like these institutional investors just move around and find new places to suck up all the affordable units . And don't even get me started on those luxury rentals they're converting old homes into – it's like they're pricing out people who actually need a place to live . We need some real solutions here, not just band-aid fixes that only benefit certain groups of people .

man, think about it... this executive order might be a small step in the right direction, but we gotta look at the bigger picture, you know? Institutional investors might not be the root of all evil, but they're definitely playing a role in driving up housing costs and pushing out long-time residents. I mean, what's the real cost of these "investments" when it comes to community development and affordable living?

It's like, we can't just blame the bad guys (or in this case, investors) without acknowledging that our system is designed to favor profit over people. We need systemic change, not just a Band-Aid solution.

omg u no wat im thinkin about dis news so like chicagoans r gonna b relieved cuz trump is tryna curb institutional investors but experts say its not gonna make a diff lol these landlords r still a huge part of the problem in chicago they just wanna cash out on all these homes without providin any real help and it feels like trump's order is more like a bandaid solution than actual change

I'm all about fairness in housing market ! So, President Trump's executive order might be a small step in the right direction, but it's not enough to tackle the root of the problem . Institutional investors are still a major contributing factor to Chicago's housing shortage , and we need more comprehensive solutions .

I mean, think about it - these private equity firms own thousands of rental units, and they're targeting trendy neighborhoods on the North and West sides ? That just means they're driving up prices for younger buyers who can't afford to live there . And don't even get me started on the so-called "rehabbing" properties - research shows that these investors are more likely to inflate rents, skimp on maintenance, and convert homes to vacation rentals .

We need concrete solutions like congressional laws that encourage new construction and facilitate home buybacks from investors . Anything less is just a drop in the bucket ! #HousingForAll #AffordableLiving #ComprehensiveSolutions

I'm not sure if this new order is gonna make a huge difference in Chicago's housing market... I mean, 13% of homes are still owned by investors? That's still pretty high, right? And it sounds like they're mostly buying up "trendy" neighborhoods which just pushes prices even higher for the people who need affordable housing. Like, what's the point of just moving some wealth around if it doesn't actually solve the problem?

I was just reading about these crazy affordable housing plans in LA... they're supposed to build 140K units over the next decade, which sounds awesome but I'm not sure if it's gonna be enough. Have you guys heard of those modular homes that are popping up everywhere? I saw a video of some people building their own tiny home on wheels and it was so cool! I wonder what would happen if everyone just got creative with building their own homes... would that really solve the housing shortage or is that just wishful thinking?

Oh, and speaking of cities, have you guys ever been to Chicago? I've always wanted to visit, but my friend's cousin lives there and they never send me any pictures. Maybe one day I'll take a road trip up there and check out Wrigley Field...

I mean, can't the government just make institutional investors pay their fair share of taxes or something? It feels like they're just papering over the issue instead of really tackling the root problem. And what's with these first-look policies and disclosure requirements? Sounds like a bunch of bureaucratic red tape to me...

And don't even get me started on how this is going to affect the people who actually need affordable housing. Those "trendy" neighborhoods are where all the young professionals want to live, but they're not exactly known for being affordable. It's like the government is just trying to push out the low-income folks and make way for more luxury condos...

I wish economists would come up with some real solutions that don't just involve tweaking existing laws or regulations. Like, what if there was a program in place to actually encourage people to buy and renovate old homes? Or provide financial incentives for developers to build more affordable housing units? Something like that...