U.S. President Donald Trump shocked the national real estate market by announcing a federal plan to ban large institutional investors from purchasing single-family homes. He claims that this move is designed to lower costs for many struggling U.S. families today.
The announcement, delivered on 8 January 2026 via Truth Social, marks a shift in federal housing policy. Trump argued that large investors have outbid young families, effectively destroying the American Dream for millions of hardworking citizens nationwide.
In a social media post, the U.S. president stated, “People live in homes,” and emphasized that his administration will prioritize first-time buyers over private equity landlords, who have dominated many local markets since the 2008 global financial crisis.
Trump confirmed he will soon request the U.S. Congress to codify the measure into law. This legislative push aims to provide a long-term framework that prevents corporate entities from ever monopolizing the limited residential housing supply in the country.
He is expected to discuss further specifics regarding this ban in his upcoming keynote speech at the World Economic Forum in Davos. This high-profile address will outline broader strategies for addressing the national housing and affordability crisis globally.
Current economic data highlights the severity of the situation facing many modern buyers. In 2025 for example, the median sale price for homes in the U.S hit approximately U.S. 410800, a record high that has left many middle-class families feeling completely hopeless.
Wall Street responded immediately to the announcement as shares of large real estate companies plummeted. Blackstone, Invitation Homes, and American Homes 4 Rent all saw their stock prices dive during early trading sessions as investors reacted to the news.
Institutional investment in residential housing surged following the 2008 crash and accelerated during the pandemic. Analysts currently debate the total market share held by these firms. Some estimates range from two to three percent of all single-family homes.
Trump also took the opportunity to criticize Joe Biden and blamed his leadership for record-high inflation. He claimed that the failed economic policies of the Biden administration directly caused the current housing shortage that has plagued every major U.S. city.
While this remains a Republican-led initiative, some Democrats have expressed support. However, in examining the broader economic platform of Trump, some could argue that a simple ban does not address the fundamental shortage in housing supply.
It also remains unclear if the administration possesses the legal authority to bar private entities from purchasing real estate without facing complex federal litigation. The federal government may face significant court challenges regarding property rights.
The proposed ban targets future purchases rather than existing holdings. There is currently no suggestion that large real estate firms or institutional investors will be forced to sell the hundreds of thousands of homes they already own across the United States.