President Trump said his administration will move to bar Wall Street investors from buying single‑family homes and will ask Congress to codify the measure, while previewing further housing proposals at Davos. He offered no detailed legal framework, and the White House had not clarified how the ban would be enforced. Markets reacted sharply: American Homes 4 Rent plunged to a near three‑year low and Blackstone shares fell to a one‑month low, sending the PHLX Housing Index down about 2.1%.
Trump Moves To Bar Wall Street From Buying Single‑Family Homes; Markets Slide After Announcement
FILE PHOTO: A for sale sign is shown for a residential home in Encinitas, California, U.S. July 25, 2025. REUTERS/Mike Blake/File Photo
U.S. President Donald Trump announced on Jan. 7 that his administration is preparing to prohibit large Wall Street investors from buying single‑family homes, part of a push he says is aimed at improving housing affordability. In a post on Truth Social, Trump said he would ask Congress to codify the measure and outline additional housing proposals at the Davos World Economic Forum.
"For a very long time, buying and owning a home was considered the pinnacle of the American Dream," Trump wrote. "People live in homes, not corporations."
What Trump Announced
Trump said he was taking "immediate action" and would request legislative changes to block institutional investors from purchasing single‑family houses. He did not provide detailed policy language or identify the specific legal authority he would use, and the White House had not provided additional comment at the time of reporting. The president was also scheduled to sign unspecified executive orders later that day.
Market Reaction
Markets reacted quickly to the announcement. Shares of residential landlords and homebuilders fell: American Homes 4 Rent dropped to a near three‑year low of $28.84 and was halted for volatility before last trading down about 6% at $30.56. Blackstone hit a one‑month low of $147.52 and was last down roughly 5% at $154.49. The PHLX Housing Index fell about 2.1%, on pace for its largest single‑day percentage drop since Nov. 17.
Context And Implications
Large institutional investors such as Blackstone bought thousands of single‑family homes after the 2008 financial crisis, a trend that housing advocates and some lawmakers say has contributed to rising rents and reduced affordability. Critics argue that banning institutional purchases could curb pressure on prices and rentals, while opponents warn such a restriction could have unintended effects on housing supply and investment.
It remained unclear how a ban would be implemented in practice or what statutory changes Congress would be asked to approve. Legal experts and market participants were likely to scrutinize any proposed mechanism closely, since restricting purchases on the private market raises complex regulatory and constitutional questions.
Political Angle
The announcement comes as the Republican president faces pressure to address voter concerns about the cost of living ahead of midterm elections that will determine whether his party retains control of Congress. Trump has at times blamed inflation on his Democratic predecessor and has emphasized affordability as a political priority.
Reporting for this story was provided by Reuters journalists in Toronto and Washington. Blackstone did not immediately respond to a request for comment.
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