Overview
- The White House says it is taking steps to bar large institutional investors from purchasing additional single-family homes and will ask Congress to codify the restriction, though thresholds and enforcement have not been released.
- Trump also proposed having Fannie Mae and Freddie Mac buy about $200 billion in mortgage-backed securities to compress mortgage spreads and lower mortgage rates, with operational specifics still unclear.
- Markets reacted swiftly to the initial announcement, with Blackstone shares dropping intraday and single-family rental REITs including Invitation Homes and American Homes 4 Rent falling on Jan. 7.
- Research shows institutional ownership is small nationally—Parcl Labs estimates about 3.4% of single-family homes—yet concentrated in some metros, with GAO reporting large shares of rentals in Atlanta, Charlotte and Phoenix.
- Democratic lawmakers including Elizabeth Warren and Jeff Merkley welcomed work on limits to corporate buying, and FHFA Director Bill Pulte said he is refocusing from a proposed 50-year mortgage concept to prioritize the investor crackdown ahead of a planned Davos rollout.