Trump plans to ban institutional investors from buying single-family homes
Frances Newton, economic strategist and wealth manager at Scarlet Oak, assesses the state of the market and the Fed’s “make money” strategy.
president Donald Trump On Wednesday, he announced plans to bar institutional investors from purchasing single-family homes in what he sees as a way to improve affordability for Americans.
“For too long, buying and owning a home has been considered the pinnacle of the American dream,” Trump wrote in a post on his Truth Social platform.
“It was a reward for working hard, doing the right thing, but now, because of record high inflation caused by Joe Biden and Democrats in congress, that American dream is out of reach for too many people, especially young Americans.”
Texas and Florida once again top the U-HAUL “Growth Index.”
Trump’s plan to ban financial institutions from purchasing single-family homes aims to boost affordability. (Getty Images/Getty Images)
“For this reason, and much more, I am immediately taking steps to prevent large institutional investors from purchasing any more single-family homes, and I will call on Congress to legalize it,” Trump said.
The president added that he “will discuss this topic, including more housing and affordability proposals, and more, in my speech in Davos in two weeks.”
The housing market is expected to offer little relief to buyers in 2026 despite modest improvements ahead
Large financial institutions like Blackstone have purchased thousands of single-family homes since the 2008 financial crisis spurred a wave of foreclosures.
Businesses are increasingly investing in rental homes, which have outperformed other commercial property sectors such as office and retail in recent years amid rising borrowing costs and shifts in business patterns.
Shares of housing sector companies, including institutions involved in purchasing single-family homes, fell after Trump’s announcement. (Matthew Bush/Bloomberg/Getty Images/Getty Images)
Housing advocates and lawmakers, including Democrats, have criticized institutional landlords as restricting housing supply and increasing rental costs for Americans.
Powell says interest rate cuts won’t make “much difference” to struggling housing sector
It is unclear what legal authorities the president will cite as he seeks to prevent corporate houses from buying homes, or what additional measures he will pressure Congress to take.
The president’s announcement caused shares of homebuilders to decline during Wednesday’s trading session.
law"/>President Donald Trump said he plans to move forward with measures aimed at preventing institutions from purchasing single-family homes. (Ken Cedeno/Reuters/Reuters)
American Homes 4 Rent, a company that acquires homes for the rental market, saw its shares fall to their lowest level in nearly three years, with trading temporarily halted due to volatility. The stock trimmed some of its losses after trading resumed and fell by about 3.4% before the closing bell.
| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| AMH | American homes 4 for rent | 31.00 | -1.40 |
-4.31% |
The PHLX housing index fell more than 2.6% on Wednesday, which was on pace for its largest single-day percentage decline since November 17.
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Shares of Blackstone Asset Management, which invests in single-family homes, fell more than 5.9% toward the end of the trading session.
| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| BX | Blackstone Company | 153.57 | -9.05 |
-5.57% |
Institutions own just 0.5% of all single-family homes in the United States, Blackstone said in a January research note.
2026-01-07 19:39:00
