Wall Street Landlords and the Housing Crisis: A Case for Land Value Taxation

Author: Dr. Ibrahima Dramé

Published: September 24, 2026

This policy brief examines the growing dominance of institutional investors in the American housing market, a trend accelerated by the foreclosure crisis of the Great Recession. We argue that the financialization of residential real estate transformed housing from a social necessity into a profit-driven commodity, leading to inflated rents, aggressive evictions, and diminished homeownership opportunities for families. While some policy makers propose banning corporate purchases, the brief highlights how similar restrictions have often failed or backfired by further constricting rental supply. Instead, we make the case for land value taxation (LVT), a proven and effective solution for curbing speculation and incentivizing development. By shifting taxes to land and untaxing improvements, LVT can achieve affordability without any of the market distortions associated with outright bans.