U.S. President Donald Trump appears poised to restrict large institutional investors from buying single-family dwellings. With so-called "affordability" emerging as the top issue, Trump is seen as pulling out a measure to ease housing costs to win back public sentiment.
On the 7th (local time), Trump said on his social media, Truth Social, "I intend to take action to ban large institutional investors from purchasing single-family dwellings," adding, "the American Dream (buying a home) is becoming an increasingly unreachable goal for too many, especially young Americans."
Trump added, "I urge Congress to codify this," but did not mention specific policy design, who would be covered, or when it would take effect. His team said he will unveil detailed plans at the Davos Forum (World Economic Forum, WEF 2026) to be held this month.
U.S. dwelling prices have risen more than 50% since 2019, and as of November, the median selling price of dwellings surged to $409,200 (about 593 million won). With dwelling prices and mortgage rates soaring together, U.S. dwelling transaction volume has plunged over the past three years.
Trump has pointed to Wall Street-based institutional investors as the cause of skyrocketing home prices and is seen as moving to shore up public support through related curbs ahead of the November midterm elections.
Institutional investors' large-scale entry into the single-family dwelling market dates back to 2007, when the global financial crisis began. As foreclosed dwellings flooded the market then, investors bought dwellings cheaply and rented them out, reaping big revenue. As foreclosure supply gradually declined, they shifted strategy to buying newly built single-family dwellings for rent.
In fact, institutional investors have bulked up in recent years by concentrating purchases of single-family dwellings. According to The Wall Street Journal (WSJ), as the dwelling market boomed starting with the COVID-19 pandemic, investors accounted for more than 20% of single-family dwelling transaction volume in popular areas such as Houston, Miami and Phoenix.
Institutional investors are also actively expanding rental operations in the growing Sun Belt (southern regions with abundant sunshine). According to a 2024 Government Accountability Office (GAO) analysis, large institutional investors own 25% of Atlanta rental dwellings and 18% of Charlotte rental dwellings.
Markets swung immediately on Trump's "surprise declaration." On the same day, Blackstone, Invitation Homes and American Homes 4 Rent, which operate single-family rental businesses, saw their shares plunge after the social media post and closed down 4% to 6%.
The industry is taking a cautious stance. Mate Solis, spokesperson for the National Rental Dwelling Council, said, "We appreciate the administration's focus on ensuring Americans have a range of housing choices," adding, "we look forward to continuing constructive discussions with the White House and policymakers."
The opposition party, meanwhile, says Trump's move lacks sincerity. Sen. Elizabeth Warren, a Democrat, said in a statement, "For years, I have called for limits on Wall Street's purchases of American dwellings," adding, "President Trump has never taken meaningful action."