Renfrew Report… Trump is Wrong!
Trump's Executive Order on housing is a huge mistake!
By Arron Renfrew | Asset Manager | Renfrew Team | AUM Real Estate
There’s a narrative gaining traction right now that large institutional investors are the primary reason housing has become unaffordable. With recent policy moves aimed at limiting corporate ownership of single-family homes, it’s clear that lawmakers are responding to that pressure.
But from where I sit—as an asset manager working directly in the real estate trenches every day—that narrative doesn’t hold up to reality.
The Data Doesn’t Support the Blame on Big Investors
Institutional buyers make up less than 2% of total home purchases in most markets. That’s not a dominant force—it’s a marginal one.
Even more important: when these groups do purchase homes, they’re often targeting distressed or outdated properties. They deploy capital to:
Renovate neglected homes
Improve habitability and safety
Return inventory back to the market in better condition
In many cases, they are adding supply back into circulation, not removing it.
So if they’re not the primary driver, what is?
The Real Cost Driver: City Policy and Regulation
The biggest upward pressure on housing prices today isn’t Wall Street—it’s City Hall.
Across the markets I operate in, I consistently see regulatory costs adding 30% or more to the price of new construction. These costs come in many forms:
Impact fees
Permit fees
Utility hook-up charges
Environmental compliance requirements
Design review mandates
These aren’t small line items—they fundamentally reshape what it costs to build housing.
Time Is Money—and Permitting Is Slow
Beyond direct costs, there’s another major factor: time delays.
In many jurisdictions, it can take 6 to 12 months (or longer) just to get permits approved. That timeline creates:
Carrying costs on land
Interest expenses on capital
Increased risk for builders
All of that gets baked into the final sale price of a home.
When you slow down the ability to build, you restrict supply. And when supply is restricted in the face of strong demand, prices rise. It’s basic economics.
Regulation Is Constraining Supply
We don’t have a demand problem—we have a supply problem.
And that supply problem is being driven by:
Zoning restrictions limiting density
Lengthy approval processes
Layered regulatory requirements
Political resistance to new development
In other words, we’ve made it extremely difficult to build the very housing we need more of.
Misdiagnosing the Problem Leads to the Wrong Solutions
Targeting institutional investors may be politically appealing, but it risks missing the real issue.
If policymakers focus on a segment that represents only a small fraction of the market, they’re not going to move the needle on affordability in any meaningful way.
Meanwhile, the true barriers—regulation, permitting delays, and cost inflation from local policy—remain untouched.
What Actually Needs to Change
If we’re serious about making housing more affordable, the path forward is clear:
Streamline permitting processes to reduce delays
Lower or restructure impact fees to encourage development
Increase zoning flexibility to allow for more housing types
Create predictable regulatory environments so builders can plan with confidence
These changes would directly address supply constraints—and that’s where real price relief comes from.
Final Thoughts
As someone actively managing real estate assets and working with buyers, sellers, and investors every day, I can tell you this:
Blaming institutional investors might make for a compelling headline, but it doesn’t solve the problem.
If anything, it distracts from the deeper structural issues that are actually driving housing costs higher.
Until we address those—particularly at the city level—we’re going to continue seeing affordability challenges, regardless of who is buying homes.
If you’re navigating today’s housing market and want a clear, data-driven strategy—whether you’re buying, selling, or investing—connect with me directly. At AUM Real Estate, we focus on cutting through the noise and helping our clients make smart, informed decisions.
