Trump proposes ban on "large institutional investors" buying homes
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President Trump on Wednesday said he's "taking steps to ban large institutional investors from buying more single-family homes," linking the move to housing affordability.
Why it matters: Real estate investors — including both large and small-scale operations — bought about 1 in 3 single-family homes sold in the second quarter of 2025, according to a report by market intelligence firm C.J. Patrick using BatchData figures.
- "People live in homes, not corporations," Trump said on his social media platform, Truth Social.
The impact: Shares of home-owning companies fell sharply Wednesday after Trump's statement.
- OpenDoor, an online platform that buys and sells residential real estate, was trading down 11.5%.
- Stocks in other big players in the space saw big initial drops before paring losses — Blackstone and Invitation Homes were down more than 9% at one point, while American Homes 4 Rent Class A was down over 7%.
- Reps from those companies did not immediately respond to requests for comment.
Friction point: Critics say the trend contributes to rising home prices and rent hikes.
- Democratic lawmakers have criticized Wall Street's role in the housing market for years dating back to the 2008 financial crisis. Legislation to ban institutional investors from the single-family home market was floated in 2023.
What we're watching: It remains to be seen how institutional investors will be defined.
- Companies owning 1,000+ properties represented only 2% of all investor-owned homes in Q2, according to the C.J. Patrick report.
- Investors owning up to 10 properties owned more than 90% of investor-owned homes.
Either way, Congress will need to take action to ban institutional investors from acquiring homes.
- "I will be calling on Congress to codify it," Trump said.
What's next: Trump said he would discuss the topic at Davos later this month.
