Overview
- President Donald Trump said he is moving to prohibit large institutional investors from purchasing additional single-family homes and will ask Congress to codify the restriction, with detailed enforcement plans still undisclosed.
- Republicans showed mixed reactions, with House and Senate leaders such as Rep. Ann Wagner and Sen. Thom Tillis expressing opposition, while Sen. Josh Hawley voiced support and said legislation will likely be required.
- Democrats who have pushed similar limits, including Sens. Elizabeth Warren, Jeff Merkley and Tammy Baldwin, signaled openness to bipartisan legislation to curb corporate ownership of single-family homes.
- FHFA Director Bill Pulte said preventing new institutional acquisitions is among dozens of ideas under review, and the administration has also floated directing Fannie Mae and Freddie Mac to buy about $200 billion in mortgage bonds to reduce borrowing costs.
- Stocks tied to single-family rentals slid after Trump’s announcement, and economists noted large investors account for a small national share of purchases even as concentrations are higher in some metros, with many experts citing a housing supply shortage as the primary affordability challenge.