President Donald Trump said Wednesday that he plans to take executive action to stop “large institutional investors” from buying “single-family” homes in the United States.
In a post on Truth Social, Trump said the move comes as housing affordability remains a major concern for Americans, adding that he would like Congress to codify the policy into law.
“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,” he posted.
“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. I will discuss this topic, including further Housing and Affordability proposals, and more, at my speech in Davos in two weeks,” he continued. The details of the plan are currently unknown.
A 2024 Government Accountability Office report found that the impact of institutional investors varies widely by region, with many areas in the southern United States showing a significant share of the single-family rental homes owned by investors with more than 1,000 properties.
“Millions of homeowners defaulted on their mortgages during the 2007-2009 financial crisis. Institutional investors — companies that own a lot of single-family rental homes — bought many of these foreclosed homes in bulk and converted them into rental housing, especially in states across the southern U.S.,” the GAO’s website states regarding the report.
“Researchers found that institutional investors may have contributed to increasing home prices and rents following the financial crisis. However, it’s unclear how these investors affected homeownership opportunities or tenants because many related factors affect homeownership — e.g., market conditions, demographic factors, and lending conditions,” it continues.
Interest rates are also expected to be a major factor, as Trump is expected to name a successor to Federal Reserve Chair Jerome Powell, whose term ends in May. The president has called for rates to be cut more aggressively, which could impact how much homebuyers can afford to borrow.
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