President Donald Trump says it’s time to stop big investment firms from buying up single-family homes in the United States, a move aimed at making housing more affordable for regular Americans.
“People live in homes, not corporations,” Trump wrote in a Truth Social post earlier this week.
“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.”
Trump said the American Dream of homeownership is slipping out of reach, especially for younger Americans, and blamed the situation on what he called “Record High Inflation” under President Joe Biden and the Democrats.
He plans to share more details and proposals during a speech at the World Economic Forum in Davos starting Jan. 19.
Senate Democratic Leader Chuck Schumer responded to Trump’s post by noting the GOP’s prior opposition:
“Senate Democrats tried to do this last year. Republicans blocked it,” he wrote on X.
A Longstanding Demand from Housing Advocates and Voters
Trump’s pledge responds to years of public frustration over Wall Street’s growing role in the housing market.
After the 2008 financial crisis, hedge funds and private equity firms scooped up tens of thousands of foreclosed homes and turned them into rentals.
In some cities like Charlotte, North Carolina, corporate investors have bought up entire blocks in working-class neighborhoods.
In one neighborhood on the east side of Charlotte, Wall Street-backed firms purchased half of the homes sold in 2021 and 2022, according to The New York Times.
While institutional investors own a small share of the total single-family housing stock nationwide, between 0.5% and 4%, depending on how they’re defined, their presence is far more concentrated in certain markets.
According to the Urban Institute, they owned about 3% of all single-family rentals as of mid-2022, with shares as high as 20% in places like Charlotte.
Critics argue these firms inflate prices, push out first-time buyers, and drive up rents.
Institutional buyers often pay in cash and compete directly with families who rely on mortgages, worsening the affordability crisis in already tight markets.
Democrats Tried It First, And Got Blocked
Trump’s announcement mirrors a Democratic effort from 2023.
That year, Sen. Jeff Merkley (D-OR) and Rep. Adam Smith (D-WA) introduced the End Hedge Fund Control of American Homes Act, which would ban hedge funds and similar institutional investors from buying single-family homes and require them to sell off their holdings over 10 years.
Proceeds from penalties during the phaseout would fund down payment assistance for families.
“You have created a situation where ordinary Americans aren’t bidding against other families, they’re bidding against the billionaires of America for these houses,” Merkley said in 2023.
The bill failed to advance amid Republican opposition in a divided Congress, according to The New York Times
Now, with Trump backing a similar idea, some Republicans are changing course.
Sen. Bernie Moreno (R-OH) announced that he would introduce legislation to codify Trump’s proposal.
Will It Actually Help?
Experts are divided on whether banning big investors will significantly lower housing costs.
Jake Krimmel, senior economist at Realtor, said that “the proposal is unlikely to move the needle on affordability. The affordability crisis is fundamentally a supply problem.”
Laurie Goodman, a fellow at the Urban Institute, told the BBC that the impact depends on how “large investors” are defined.
Her research estimates that institutional investors owning 1,000 or more homes in multiple markets account for about 4% of the single-family rental market, and that number has remained steady due to high interest rates slowing purchases.
Daryl Fairweather, the chief economist at Redfin, said that restricting large investors may not result in more homes going to first-time buyers, since smaller or mid-sized investors could simply take their place.
Blackstone, one of the biggest players in this space, said that institutions own just 0.5% of all single-family homes in the U.S. A 2024 study from the American Enterprise Institute estimated the figure is closer to 1%.
Housing Groups Welcome the Spotlight, But Push for Supply
Some housing advocates cautiously support Trump’s proposal but stress the need for structural reforms.
Sam Garin of the Private Equity Stakeholder Project told the BBC her group welcomed the move but added, “We eagerly await the details of what this policy will actually entail. But we urge policymakers not to stop there.”
Shannon McGahn, chief advocacy officer at the National Association of Realtors, said in a statement, “We share the goal of ensuring there are enough places for people to live and of expanding access to homeownership—especially for first-time buyers—and ensuring that housing policy strengthens communities rather than limiting opportunity.”
NAR research shows investor activity varies by state, and in many areas, smaller entities such as LLCs make up a greater share than large hedge funds.
Still, at a time when home prices are historically high, many Americans are looking for bold changes.
For now, Trump’s proposal brings fresh attention to an issue that has frustrated both progressive lawmakers and conservative voters.
Whether this latest push results in actual legislation or meaningful change remains to be seen.
IMAGE CREDIT: “President Donald Trump” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.