Can Trump’s Order Curbing Institutional Buyers Lower Home Prices?

President Trump has signed an executive order directing federal agencies to issue guidance aimed at limiting large institutional investors from buying single‑family homes. The administration argues these investors have crowded out ordinary buyers and transformed neighborhoods into trading floors, but housing experts say the policy may do little to reduce prices nationally.

What The Order Does — And What It Doesn’t (Yet)

The order asks agencies to define and restrict when and how large institutional investors can purchase single‑family homes. Key terms — including what counts as a “large institutional investor” and which properties qualify as “single‑family homes” — are expected to be clarified in coming weeks. The directive includes an explicit carve‑out for “build‑to‑rent” projects, where investors partner with builders to create new rental neighborhoods.

How Big A Role Do Institutional Investors Play?

Data suggest institutional investors are a smaller piece of the national market than public debate implies. Realtor.com reports that buyers owning 50 or more properties accounted for less than 2% of single‑family home purchases last year (a share that peaked at 3.5% in 2022). A separate analysis by the American Enterprise Institute, using Parcl Labs data, found investors with 100+ rental homes owned roughly 1% of the nation’s single‑family housing stock as of November.

"Large‑scale institutional investors make up a very small percentage of homeownership in the country," said Joel Berner, senior economist at Realtor.com. He added that many investors have been net sellers recently.

Local Hotspots And Uneven Effects

Institutional activity is concentrated in some metros, particularly in parts of the Sun Belt, so the impact of any restriction would vary by city. The Government Accountability Office found that large institutions owned 25% of single‑family rentals in Atlanta, 21% in Jacksonville and 18% in Charlotte. The GAO noted the institutional push began after the Great Recession, when firms bought portfolios of foreclosed homes and converted many to rentals.

Why Experts Say This Won’t Fix Affordability By Itself

Economists argue that the primary drivers of the pandemic‑era price surge were broader market forces, not investor purchases alone. A 2022 Freddie Mac study identified four main drivers:

• Record‑low mortgage rates in 2020–2021 that boosted demand;
• Limited supply after years of underbuilding;
• Demographic waves of first‑time buyers;
• Migration from high‑cost cities to already constrained areas.

Analysts say targeting institutional buyers could have localized benefits in some markets but would not address the supply shortage that underlies rising prices. Daryl Fairweather, chief economist at Redfin, and others emphasize that increasing housing supply and easing barriers to new construction would do more for long‑term affordability than restricting a relatively small group of buyers.

Bottom Line

Trump’s executive order signals a bipartisan concern about large investors buying single‑family homes, and it could change buying patterns in specific cities where institutional ownership is concentrated. However, available data and expert analysis suggest the policy is unlikely to meaningfully lower national home prices on its own. Policymakers seeking durable affordability gains will likely need to focus on boosting supply and reforming local zoning and construction constraints.

Sources: Realtor.com, American Enterprise Institute (Parcl Labs), Freddie Mac, Government Accountability Office, statements from housing economists.