Wall Street is pushing back on a new Senate proposal that would deliver on Trump’s promise to box institutional investors out of housing.
Firms are particularly concerned about a requirement that institutional investors sell any rental homes they build to individuals within seven years, people familiar with the talks told Semafor.
The broader effort “is just dumb,” private-equity ally Sen. Thom Tillis, R-N.C., said. “Let the market do what the market does.”
Senate Banking Chair Tim Scott said he doesn’t “have a dog in the fight” beyond making the language “as impactful as necessary to pass” lawmakers’ other housing priorities, noting Trump is “going to sign legislation he supports.”
But House Financial Services Chair French Hill signaled the lower chamber may be more sympathetic to industry: “It’s all about the definition,” Hill said. “We really just need to wait and see how that passes muster.”