Buffalo, N.Y. (WBEN) - At first glance, a recent proposal from President Donald Trump that would put a ban on institutional investment groups from buying single family homes would seem like a victory for individuals.
But Trump's proposal is just that - a proposal.
Supporters say it would aid individual home buyers, especially first time buyers, because they would not have to compete against deep-pocketed REITS and investors who can provide a higher than expected bid.
Critics contend the proposal would never survive any legal challenge.
"When it comes to property rights, [Trump's proposal] would not be upheld by any court," said Buffalo attorney Sean Hopkins, a partners with Hopkins Sorgi & McCarthy.
Some refer to Trump's proposal as "Swiss Cheese" legislation because it has many legal holes and question marks.
While not necessarily a major issue in the Buffalo Niagara market place, institutional investors buying single family homes at inflated prices is a major real estate-related talking point in other states.
Nationally, just 4% of all single family homes are owned by REITs or institutional investors. In the Buffalo Niagara market it is less than 1%.
"My concern is that it may result in fewer sales because buyers can't compete with these investment groups," said Peter Hunt, Hunt Real Estate Corp. chairman.
Those concerns come against the backdrop of rising home sale prices and a still limited inventory.
Nationally, according to the Federal Reserve, the median home sale price is $418,000 - up 30% since 2020 when the median home sale price was $317,100.
Locally, based on Buffalo Niagara Association of Realtors data, the median home sale is $275,000 - up 10% from one year ago when it was $250,000.
Trump's latest proposal is the third in recent months that he has proposed in an effort to bolster the residential real estate market.
Trump, in 2025, proposed a 50-year mortgage package and also a floating mortgage proposal. Neither went beyond a social media missive offered by the President.
"There are built-in conflicts with these proposals," Hunt said.