President Donald Trump has unveiled the first step in what he calls “aggressive” housing market reforms, proposing a ban on large institutional investors purchasing single-family homes. In a Truth Social post, Trump said he will ask Congress to turn the move into law, declaring, “People live in homes, not corporations.”
The proposal comes as housing affordability remains under pressure. Mortgage rates stayed above 6% throughout 2025, home prices remain elevated, and many would-be buyers are still sidelined. Investor demand has added to these challenges in some markets by increasing competition and pushing prices higher.
According to Realtor.com, investors bought 10.8% of homes in the second quarter of 2025. However, most of that activity came from smaller investors, with more than 80% of purchases made by firms far below the “large institutional” threshold. As a result, some economists argue the proposed ban may have only a limited impact on overall affordability.
More details on Trump’s housing agenda are expected later this month, with additional announcements likely during his appearance at the World Economic Forum in Davos.
Article By-Shahzad Ahmad
Frequently Asked Questions
What is Trump proposing?
Trump wants to ban large institutional investors from buying single-family homes and is asking Congress to make the ban law.
Why is this proposal being introduced now?
Housing affordability is strained, with high mortgage rates and elevated home prices keeping many buyers out of the market.
How do investors affect home prices?
Investor demand can increase competition for homes, pushing prices higher and making it harder for owner-occupiers to buy.
How big is the role of large investors?
Investors bought about 10.8% of homes in mid-2025, but more than 80% of those purchases were made by smaller investors, not large institutions.
Will this ban significantly improve affordability?
Some experts say the impact may be limited, since large institutional investors own a relatively small share of single-family homes.
