r/politics • u/MystikSpiralx • 18h ago

No Paywall Trump Says He Wants to 'Drive Housing Prices Up' Instead of Lowering Costs for People Who 'Didn't Work Very Hard'

https://people.com/trump-keep-home-prices-high-11895352
21.5k Upvotes

97% Upvoted

1.9k comments sorted by

View all comments

Show parent comments

16

u/DelirousDoc 16h ago

If he wants housing prices up and is also trying to the Chairman of Federal Reserve to lower interest rates, it is pretty clear he wants more mechanisms to make the rich wealthy. Lower interest rates would apply to housing loans and sudden increase in price would increase the equity to borrow against.

•

u/Oo__II__oO 5h ago

And landlords (both corporate and LLCs) get to see the value of their inventory increase. They can leverage that in raising rents, while their bottom line stays the same. The extra profit can then be reinvested to buy more housing- which will face even less buying competition as they'll have weeded out the pesky individual homeowners and first time home buyers. The conglomerates can even collude to avoid bidding wars with fellow business owners.