By Nathaniel Meyersohn, NCS
New York (NCS) — President Donald Trump mentioned Wednesday that he intends to ban massive institutional investors from buying extra single-household homes.
“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 wrote in a publish on social media.
Large institutional investors comparable to Blackstone, JPMorgan Chase, and different banks and funding companies have more and more snapped up household homes lately, eyeing rising returns on house costs. These investors typically purchase and hire out homes, and their presence grew after the foreclosures wave throughout the Great Recession in 2008, notably within the Sun Belt states.
Shares of Blackstone fell by as a lot as 9% on Wednesday after the president’s social media publish.
Trump mentioned he plans to define extra housing and affordability proposals within the coming weeks, noting: “I will discuss this topic, including further Housing and Affordability proposals, and more, at my speech in Davos in two weeks.”
Trump is scheduled to ship an handle on the World Economic Forum later this month in Davos, Switzerland.
US housing market in a deep freeze
The value of buying a house within the United States has surged lately, largely due to a housing market that has remained traditionally caught due to low stock, mixed with mortgage charges north of 6%.
Beyond the final lack of housing, many sellers have been unwilling to hand over the extremely-low mortgage charges they locked in throughout the pandemic, when the Federal Reserve introduced down rates of interest to close to zero.
Between the beginning of 2020 and the third quarter of 2025, house costs climbed almost 55% nationwide, in accordance to a current report from the National Association of Home Builders.
No investor owned 1,000 or extra single-household rental homes as of 2011, in accordance to the Government Accountability Office. However, by 2015, institutional investors collectively owned up to 300,000 homes.
In Atlanta; Jacksonville, Florida; and Charlotte, North Carolina, massive investors managed greater than 15% of the marketplace for single-household homes as of 2022, in accordance to the GAO.
Lawmakers on each side of the aisle have proposed barring sure company investors from the house-buying market, arguing that their apply of buying homes en masse has pushed up costs and made it tougher for particular person Americans to discover homes.
But some housing specialists and economists have panned the thought to ban massive investors, contending that it will have little affect on total housing inventory and danger miserable funding out there.
“This will not fix housing affordability. It may boost single-family purchases, but it will come at the cost of reducing single-family rentals,” mentioned Jaret Seiberg, analyst at TD Cowen, in a be aware Wednesday.
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