Trump renews his call to ban institutional homebuyers as Democrats offer a competing crackdown

President Trump renewed his call to ban institutional investors from buying single-family homes during his State of the Union address on Tuesday, the same day Democrats offered their own proposal to crack down on the practice. But experts say neither plan is likely to do much to make homes more affordable. Edited by Aimee Picchi In:

President Trump renewed his call to ban institutional investors from buying single-family homes during his State of the Union address on Tuesday, the same day Democrats offered their own proposal to crack down on the practice. But experts say neither plan is likely to do much to make homes more affordable.

Mr. Trump first floated the idea last month in a social media post, proposing to bar institutional investors that own 100 or more homes from buying single-family properties and writing that "people live in homes, not corporations." Democrats, for their part, introduced a bill that would limit certain tax deductions for large-scale homebuyers.

While both approaches aim to improve housing affordability, experts say they fall short of addressing the core driver of rising prices: a shortage of homes. Homebuilding cratered after the Great Recession of 2008-09 and has yet to catch up with demand.

The U.S. would need to build as many as 4 million additional homes beyond the normal pace of construction to significantly reduce the housing shortage, according to a Goldman Sachs estimate.

"The core problem is that we don't have enough supply, and neither proposal really solves this core issue," Alex Blackwood, CEO of Mogul, a real estate investment startup, told CBS News.