US President Donald Trump has announced plans to ban large institutional investors from buying single-family homes, citing the need to reduce home prices and make the American Dream more accessible. Trump stated that he is taking immediate steps to implement the ban and will also call on Congress to codify it in law. The move targets Wall Street firms that have been buying up thousands of single-family homes since the 2008 financial crisis, with institutional investors now owning around 3% of all single-family rental homes nationally.
The ban is seen as a potential blow to private-equity landlords such as Blackstone, American Homes 4 Rent, and Progress Residential, which have been criticized for contributing to rising housing costs. Trump's move aligns with long-held Democratic criticism of corporate homebuying, and it comes as the president faces growing pressure to address voter anxiety over the cost of living ahead of this year's congressional midterm elections.
The announcement has already had an impact on the market, with shares of American Homes 4 Rent and Blackstone falling significantly. The PHLX housing index also dropped 2.6% following the news. It remains to be seen how the ban will be implemented and what its long-term effects will be on the housing market.