President Donald Trump announced on Wednesday he will take steps to ban large institutional investors from buying single-family homes across the United States. He stated the move aims to make housing more affordable for Americans. Trump shared his intentions in a social media post, declaring, "People live in homes, not corporations."^[1][2][3][4] He plans to reveal more details about this proposal at the World Economic Forum in Davos, Switzerland, later this month.^[1][5][3] ### Trump Cites Affordability Crisis In his social media statement, President Trump argued that the dream of homeownership has become increasingly out of reach for many Americans, especially younger generations. He specifically blamed "Record High Inflation caused by Joe Biden and the Democrats in Congress" for this trend.^[2][6][4] Trump emphasized that immediate action is necessary to help more people achieve the milestone of owning a residence.^[1][2] He stated he is "immediately taking steps" toward this ban and will call on Congress to codify it into law.^[1][3][7] The announcement quickly impacted financial markets. Shares of major home leasing and management companies saw sharp declines. Invitation Homes' stock price slid more than 7%, while American Homes 4 Rent dropped 6.3%.^[1] Investment giant Blackstone, which owns and rents homes, also saw its shares fall more than 4%.^[1][3][8] These companies initially expressed alarm, though some trimmed losses to end the day down around 5%.^[5] ### Debate Over Investor Impact The role of large investors in the housing market is a long-standing debate. According to an August analysis by the American Enterprise Institute (AEI), a nonpartisan think tank, institutional investors own roughly 1% of the total single-family housing stock nationwide.^[1][9] This study defined such investors as those owning at least 100 properties.^[1] However, this ownership varies by location, reaching as high as 4.2% in Atlanta, 2.6% in Dallas, and 2.2% in Houston.^[1] These investors tend to concentrate more in lower- and middle-income communities.^[1] Some experts are skeptical that Trump's proposal will significantly ease housing costs for Americans. Jake Krimmel, a senior economist at Realtor.com, said the proposal is "unlikely to move the needle on affordability."^[7] He explained that the affordability crisis is fundamentally a supply problem. Meaningful relief requires adding homes through new construction or inventory gains in constrained markets, particularly in the Northeast and Midwest.^[7] Edward Pinto, senior fellow and co-director of the AEI Housing Center, suggested that institutional investors contribute to housing supply by buying and renovating derelict homes. They then put these properties back on the market.^[1] Pinto warned that a ban could have unintended consequences by discouraging such players from selling their existing properties.^[1] He argued that a better approach to creating affordable housing involves more efficient use of existing stock and incentivizing states to build more homes.^[1] Conversely, the Government Accountability Office found in 2024 that institutional investment can increase rents and home prices. This is especially true in areas with high concentrations of investor-owned properties.^[1] Colin Allen, executive director of the American Property Owners Alliance, a nonpartisan advocacy group, expressed support for policies blocking large investors. He told CBS News that each home bought by an institutional investor is one less for an owner-occupant.^[1] ### Political Landscape and Next Steps The proposal has drawn attention from both political parties. Republican Senator Bernie Moreno of Ohio, a member of the Senate Banking Committee, quickly voiced support. He stated on X that he would introduce legislation to codify the ban into law.^[9][7][8] However, Democrats, including Senator Elizabeth Warren of Massachusetts and Senate Minority Leader Charles E. Schumer of New York, pointed out that they have advocated for similar measures for years.^[9][10][8] Senator Warren stated she has been "advocating for years to limit Wall Street from buying up America's homes."^[9][10][8] Schumer noted on X that "Senate Democrats tried to do this last year. Republicans blocked it."^[9][8] President Trump has not yet provided specific details on how the ban would be implemented or what legal mechanisms would be used to prevent private companies from purchasing properties.^[2][7][11] The proposal is expected to stop future purchases by large institutional investors, rather than requiring them to sell existing homes.^[3] Trump's upcoming speech at the World Economic Forum in Davos is expected to offer more clarity on his housing and affordability proposals.^[1][5][3]

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