In a significant policy announcement, former US President Donald Trump has declared his intention to take steps to ban large institutional investors from purchasing single-family homes across the United States. The announcement, made via his Truth Social platform, sent shockwaves through the real estate and financial markets, causing shares of major companies in the single-family rental sector to plummet.
The Announcement and Its Rationale
Trump, who is a leading figure in the Republican party, framed the move as a defence of the traditional American Dream. He stated that for a long time, owning a home was considered the ultimate reward for hard work. However, he blamed the current administration under President Joe Biden and Democrats in Congress for creating "Record High Inflation," which he claims has put this dream out of reach for many, especially younger Americans.
The core argument from Trump and his conservative supporters is that large-scale investors buying up residential properties to rent them out have reduced the availability of homes for ordinary buyers. This activity, they contend, has driven up both purchase prices and rental costs, creating immense frustration among potential first-time homebuyers.
The announcement targets major players like private equity firms, real estate investment trusts (REITs), and large asset managers including Blackstone and Cerberus. Trump said he would ask Congress to formally codify the measure into law and indicated he would discuss broader housing and affordability proposals during an upcoming speech at the World Economic Forum in Davos.
Market Reaction and Data Insights
The financial markets reacted swiftly to the news. Shares of companies deeply involved in the single-family rental business, such as Blackstone, Invitation Homes, and American Homes 4 Rent, experienced sharp declines following Trump's post. The specific mechanisms for enforcing such a ban remain unclear at this early stage.
Interestingly, available data suggests that the market share of these large institutional investors is relatively modest. Blackstone itself has reported that such big investors own only about 0.5 percent of all single-family homes in the US. A 2022 report from the US Government Accountability Office found that investors owning 1,000 or more properties accounted for just 2 to 3 percent of single-family rental homes.
The vast majority of investor-owned properties are held by smaller landlords. Data indicates that around 85 percent of investor-owned homes are held by individuals or entities owning between one and five properties.
Broader Market Trends and the Road Ahead
Despite the small overall percentage, investor activity has been significant in certain periods and regions. Reports from Newswire and Housingwire cited that in mid-2025, investors purchased nearly one-third of all single-family homes sold. This surge was influenced by high mortgage rates, which made it difficult for traditional buyers to compete.
Out-of-state investors also remained active, accounting for approximately 5.56 percent of single-family home purchases in 2025. Trump's proposed ban is squarely aimed at reversing these trends. The GOP leader stated the measure is designed to make housing more affordable and to protect the principle that "people live in homes, not corporations."
The announcement sets the stage for a major political and economic debate on housing policy in the United States, highlighting the ongoing tension between investment capital and residential affordability.
