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Trump Moves to Bar Large Investors From Buying Single-Family Homes

Shares of major single-family rental owners fell after the announcement, with details to come at Davos.

Overview

  • Trump said he is "immediately taking steps" to ban large institutional buyers of single-family homes and will ask Congress to codify the policy.
  • Shares of Blackstone fell by up to about 9% and single-family rental REITs such as Invitation Homes and American Homes 4 Rent dropped roughly 5%–9% following the post.
  • The administration released no implementation details, and analysts said any broad ban would likely require legislation and carve-outs for new construction.
  • Republican Sen. Bernie Moreno said he will introduce a bill to codify the move as economists questioned its impact given large investors' small national footprint.
  • GAO and industry data show institutional owners hold about 1%–3% of single-family rentals nationally but have higher concentrations in some Sun Belt markets, and Trump plans to outline more at the World Economic Forum.