President Donald Trump has announced plans for executive action to prevent large institutional investors from purchasing single-family homes in the United States. The move addresses concerns over housing affordability amid high inflation. He urged Congress to make the policy permanent through legislation.
President Donald Trump stated on Wednesday via Truth Social that he intends to implement executive measures to halt large institutional investors from acquiring more single-family homes. This initiative responds to the escalating housing costs that have made homeownership difficult for many Americans, particularly younger ones.
Trump attributed the affordability crisis to record-high inflation under President Joe Biden and Democrats in Congress, describing homeownership as the traditional 'pinnacle of the American Dream' now out of reach. '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.
He emphasized, '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.' Trump plans to elaborate on this and other housing proposals during a speech in Davos in two weeks. Specific details of the executive action remain undisclosed.
A 2024 Government Accountability Office report highlights the role of institutional investors, noting they purchased numerous foreclosed homes during the 2007-2009 financial crisis, converting them into rentals, especially in southern U.S. states. The report indicates these investors own a significant portion of single-family rentals in some regions, potentially contributing to higher prices and rents post-crisis. However, it cautions that effects on homeownership and tenants are unclear due to factors like market conditions, demographics, and lending.
Broader economic influences, such as interest rates, could also affect affordability. Trump is expected to appoint a successor to Federal Reserve Chair Jerome Powell, whose term ends in May, and has advocated for more aggressive rate reductions to ease borrowing for homebuyers.
