US President Donald Trump announced on Truth Social that he is taking steps to ban large institutional investors from buying single‑family homes in US. The MAGA chief said he will also ask Congress to codify the measure and plans to discuss broader housing and affordability proposals during his upcoming speech at the World Economic Forum in Davos.“For a very long time, buying and owning a home was considered the pinnacle of the American Dream. It was the reward for working hard, and doing the right thing, but now, because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans,” Trump posted. Trump and some conservative supporters argue that large investors buying homes for rent have reduced availability for ordinary buyers and pushed up prices and rents. This has frustrated potential homebuyers, particularly younger Americans trying to enter the market.Large institutional investors include private equity firms, real estate investment trusts, and major asset managers such as Blackstone and Cerberus that purchase residential properties to lease. Trump’s announcement targets these large players.The market reacted quickly to this update, with shares in companies heavily involved in single‑family rentals, including Blackstone, Invitation Homes, and American Homes 4 Rent, falling sharply after the announcement. Details on how the ban would be enforced have not yet been clarified.Despite the focus on institutional investors, data suggests they own a relatively small portion of the market. Blackstone has reported that such investors currently own about 0.5 percent of all single‑family homes in the US. According to a 2022 report from the US Government Accountability Office, investors owning 1,000 or more properties accounted for only 2–3 per cent of single‑family rental homes. Most investor-owned properties are held by smaller landlords who own between one and five homes, representing around 85 per cent of investor-owned homes.According to data provided by Newswire and Housingwire, Investor activity varies across the country and over time. Reports indicate that investors purchased nearly one-third of all single-family residential properties sold in mid‑2025, influenced by high mortgage rates and affordability challenges for traditional buyers. Out-of-state investors also remain active, accounting for around 5.56 per cent of single-family home purchases in 2025.The GOP leader said the ban is intended to make housing more affordable and protect the idea that “people live in homes, not corporations.”
