Trump says he will seek to ban institutional investors from buying single-family homes

President Trump said on Wednesday that he will take steps to prevent institutional investors from buying single-family homes, saying the move would help make housing more affordable for Americans. 

In a social media post, Mr. Trump said that the dream of home ownership has become increasingly out of reach for many Americans, and said action is needed to allow more people to reach the milestone of owning a residence.

“I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it,” Mr. Trump wrote. “People live in homes, not corporations.”

He added that he will provide more details about the proposal at the World Economic Forum in Davos, Switzerland, later this month. 

The White House did not immediately respond to a request for more details on what steps Mr. Trump plans to take to limit investors from acquiring homes.

Shares of major home leasing and management companies fell sharply immediately after Mr. Trump’s announcement. Invitation Homes’ stock price slid more than 7%, while American Homes 4 Rent dropped 6.3%. Investment giant Blackstone, which also owns and rents homes, sank more than 4%.

Institutional investors account for roughly 1% of total single-family housing stock, according to an August analysis by researchers at the American Enterprise Institute, a nonpartisan think tank. The study defined such investors as those owning at least 100 properties. 

The analysis also noted that institutional ownership varies nationwide, reaching 4.2% in Atlanta, 2.6% in Dallas and 2.2% in Houston. But these investors tend not to dominate neighborhoods, even if they’re generally more concentrated in lower- and middle-income communities.

Impact on home prices and rent

Still, the recent rise of institutional investors purchasing single-family homes can have negative spillover effects for consumers, research from the U.S. Government Accountability Office shows. The GAO found that institutional investment can increase rents and home prices, particularly in geographies with high concentrations of investor-owned properties. 

More than 75% of homes across the U.S. are unaffordable for most Americans, according to Bankrate, a personal finance site. 

Data from the National Association of Realtors show that only 24% of home purchases in 2024 were made by first-time homebuyers, down from 50% in 2010.