Trump wants to block Wall Street investors from buying single-family homes — here's why

U.S. President Donald Trump has faced flak for policies that help the rich and make life more difficult for lower and middle-income families. But now he has said that he will back a ban on large institutional investors from buying single-family homes in the country, arguing that corporate hoarding has pushed housing out of reach for most Americans, especially the youth. Taking to his social media platform, Truth Social, on Wednesday, the president said he would urge Congress to "codify" the plan, and he will discuss the details at the Davos World Economic Forum later this month.

“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 wrote in his post.

The pledge has given weight to the growing idea that has been circulating for years among housing advocates and lawmakers. The move will also align with Democrats who have been criticizing Wall Street landlords for years and pushed unsuccessful bills to crack down on them, Reuters reported. “It is for that reason, and much more, that 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. People live in homes, not corporations,” the president added in his post.

Over the past decade, private equity giants, real estate investment trusts, and other large institutional investors have built sizable portfolios of single-family rental homes. Housing experts argue that these investments have reduced housing supply for potential homeowners and driven up prices. In the third quarter of 2025, the national median price for a single-family home in the U.S. was a whopping $426,800, as per Mortgage News Daily. This comes with the average 30-year fixed mortgage rate of about 6.19% as per the publication. The prices cooled down slightly after hitting a record of $435,300 in the summer, the National Association of Realtors noted, but homes still remain out of reach for young buyers.

Trump's comments have already triggered an impact on Wall Street, with share prices of firms sliding. Invitation Homes, the country's largest renter of single-family homes, tumbled 6%, while shares of Blackstone, the mammoth investing firm that has spent billions acquiring real estate companies, dropped by over 5%, CNBC reported. According to the data from the Private Equity Stakeholder Project released last year, Blackstone was the largest private-equity owner of apartments in the U.S. with over 230,000 units. The firm has bought several real estate companies, Tricon Residential, American Campus Communities, and AIR Communities.

Trump indicated that he plans to outline the housing affordability proposals, potentially during his speech at the Davos World Economic Forum in two weeks. His comments come at a time when the administration faces growing criticism over its handling of the economy and affordability. 

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