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EXCLUSIVE: A Democratic lawmaker is urging President Donald Trump to endorse her legislation aimed at curbing private equity and large investment firms from acquiring single-family homes. This comes as Trump prepares to address the housing crisis at the World Economic Forum in Davos this week.
Recently, Trump expressed concern on social media stating that homebuying, perceived as the pinnacle of the American Dream, is becoming increasingly unattainable for younger generations. He proposed a ban on institutional investors, emphasizing that homes should be owned by people, not corporations.
Senator Tammy Baldwin of Wisconsin, a key sponsor of the Stop Predatory Investing Act, shared her plans to personally appeal to Trump. During an interview with Fox News Digital, Baldwin emphasized that her bill aligns with Trump’s goals, despite it coming from the Democratic side of the aisle.
“Wisconsin families should be prioritizing homeownership in our neighborhoods rather than wealthy out-of-state investors,” Baldwin stated.
She argued that large corporations and private equity firms have exploited the housing market for too long, inflating costs and making homeownership inaccessible for many families.
Baldwin continued, “President Trump should stay true to his commitment and support my proposal aimed at stemming Wall Street’s exploitation of Wisconsin communities and making housing more affordable for families.”
Trump hinted at addressing the housing issue during his remarks at the World Economic Forum, an annual gathering of influential business and political leaders held in Davos, Switzerland.
Baldwin first introduced the legislative proposal several months ago, and it has recently been referred to the Senate Finance Committee, as indicated by congressional records.
The Stop Predatory Investing Act specifically targets investment firms that purchase large quantities of single-family homes, eliminating tax incentives that benefit mass purchases.
Under this proposed legislation, individuals or companies acquiring 50 or more homes would be unable to claim deductions for mortgage interest and depreciation, which are typically intended to assist individual homebuyers.
In her correspondence to Trump, Baldwin plans to emphasize her call for action, urging him to fulfill his promise to enhance housing affordability. She expresses her hope that he will rally Congressional Republicans to pass the Stop Predatory Investing Act swiftly.
She elaborated, “This legislation aims to confront the practices of Wall Street investors who are buying homes across the nation, causing housing prices to surge and homeownership to slip out of reach for many Americans.”
Baldwin highlighted alarming statistics indicating that, in the second quarter of 2025, private investment constituted one-third of single-family residential property sales, the highest proportion in five years.
“This troubling trend reveals that investors focus on affordable starter homes typically sought by first-time buyers, effectively pushing families out of the market,” Baldwin plans to convey to Trump. She noted her satisfaction at his public acknowledgment of the issue.
Furthermore, she pointed out the consequences of investor activity, stating that properties tend to be converted into rentals, leading to corporate landlords who often raise rents, evict tenants, and inadequately maintain properties compared to smaller landlords.
Despite these concerns, Trump previously attributed the challenges surrounding homeownership to Democrats, noting the record-level inflation experienced during their leadership.
While some Democrats welcomed Trump’s attention to housing costs, reactions varied. Senator Elizabeth Warren of Massachusetts criticized Trump for not yet taking any substantial steps to mitigate housing expenses.
Warren’s statement called for immediate action, asserting that Trump must pressure his party in the House to support a bipartisan bill aimed at reducing housing costs, which has already passed the Senate unanimously.
In contrast, Baldwin maintained a more conciliatory tone in her outreach to Trump, encouraging him to support measures that aid American families.
She wrote, “You have a chance to make homeownership more affordable for American families. I urge you to advocate for the Stop Predatory Investing Act in Congress and bring this sensible legislation to your desk for approval.”
Responding to inquiries regarding Trump’s plans to discuss housing at Davos, White House spokesperson Davis Ingle noted that the President “committed to improving housing affordability for Americans impacted by economic challenges and is dedicated to utilizing various approaches to assist the public.”
Ingle added that Trump is preparing to announce new policy initiatives designed to revive the American Dream of homeownership.
Fox News Digital also reached out to Senate Finance Committee Chairman Mike Crapo, a Republican from Idaho, for his perspective on Baldwin’s bill as the Senate committee continues its review.
Overall, this unfolding narrative highlights the growing urgency surrounding housing affordability in America. As lawmakers seek solutions, the interplay between politics and housing will remain critical to ensure that the American Dream remains accessible for future generations.
