Trump Announces Plan to Ban Institutional Investors from Buying Single-Family Homes
President Donald Trump announced Wednesday that he is taking steps to ban large institutional investors from purchasing single-family homes, framing the move as an effort to restore housing affordability and the "American Dream." The proposal sent shares of major institutional landlords tumbling.
In a post on Truth Social, Trump argued that corporate ownership of single-family homes has contributed to making homeownership "increasingly out of reach" for many Americans, particularly younger generations. "People live in homes, not corporations," he stated, pledging to call on Congress to codify the ban.
The announcement immediately impacted the stock market. Shares of Invitation Homes, the largest single-family rental company in the U.S., fell 6%. Blackstone, a major private equity investor in residential real estate, dropped more than 5%, as did Apollo Global Management.
Institutional investors, including private equity firms and real estate investment trusts, have amassed significant portfolios of single-family rental properties over the past decade. Critics argue this activity reduces the supply of homes for sale, exacerbating affordability challenges. The national median price for an existing single-family home remains elevated at $426,800 as of the third quarter, with mortgage rates hovering above 6%.
While Trump did not provide specific implementation details, he indicated he would outline further housing proposals in an upcoming speech at the World Economic Forum in Davos. The proposal received a cautious response from Senator Tim Scott, who chairs the relevant Senate committee. Scott welcomed the focus on affordability but suggested a legislative approach centered on his bipartisan "ROAD to Housing" bill, which aims to expand supply and lower costs.
The announcement marks a significant intervention in the housing market debate, directly targeting the role of institutional capital in the single-family segment and signaling a potential shift in federal housing policy.
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