President Donald Trump has introduced a proposal that could redefine part of U.S. housing policy, focusing on limiting the involvement of large institutional investors in the purchase of single-family homes. The goal is to improve access to housing for first-time buyers and young families.
The initiative was announced ahead of the World Economic Forum summit in Davos, Switzerland, where Trump is expected to provide more details on his housing plan and other economic policy matters.
According to a report by The Associated Press (AP), the president argued that a ban on “large institutional investors”, entities with the financial capacity to acquire multiple properties, would allow more homes to reach the individual buyer market, rather than being held by corporations or funds. Trump summarized the idea on social media with the phrase: “People live in homes, not in corporations.”
The announcement caused immediate stock market losses for corporations such as Blackstone and Invitation Homes. According to the agency EFECOM, the value of these companies dropped shortly after the president posted his message on the social network Truth Social, where he announced imminent executive action aimed at curbing such purchases.
Although the measure has not yet been formally legislated, Trump urged the U.S. Congress to pass a law supporting the restriction, arguing that the presence of large corporate buyers makes it harder for first-time buyers to access homeownership.
Context and Criticism
Housing experts cited by AP noted that large institutional investors account for approximately 1% of single-family homes in the United States, although their presence is more significant in urban markets like Atlanta or Dallas, which could limit the real impact of a broad ban.
Critics of the plan point out that the roots of the affordability crisis lie in an insufficient housing supply and the rapid rise in prices outpacing household income, issues that this proposal does not directly address.
MarketWatch noted that experts believe banning large investors likely won’t significantly lower prices because the main issue is the lack of new construction.
The announcement comes as Trump prepares to attend the World Economic Forum in Davos, where he is expected to expand on his economic and housing policy proposals before business and political leaders from around the world.
Various reports ahead of the event indicate that Trump’s return to the summit, his first in-person appearance in recent years, has drawn intense international attention and mixed reactions among attendees and global leaders regarding the priorities of his administration.
