Overview
- In a directive titled 'Stopping Wall Street From Competing With Main Street Homebuyers,' federal agencies are told to stop approving, insuring, guaranteeing or securitizing single‑family home acquisitions by large investors when those homes could be bought by owner‑occupants.
- The Justice Department and Federal Trade Commission are directed to review substantial or serial acquisitions by institutional landlords and prioritize cases involving coordinated vacancy or pricing strategies.
- Treasury has 30 days to define 'large institutional investor' and 'single‑family home,' while FHFA, HUD and other agencies have 60 days to issue implementing guidance.
- The order carves out purpose‑built build‑to‑rent communities and does not require divestitures or immediately prohibit purchases by institutional owners.
- Analysts expect limited near‑term effects given the small national share of institutional owners and their use of private financing, as the White House prepares legislative proposals to codify longer‑term restrictions.