President Donald Trump has announced plans to prevent large institutional investors from buying additional single-family homes, escalating a long-running debate over corporate ownership and housing affordability in the United States.

In a social media post on Wednesday, Trump said he is already taking steps to restrict purchases by major investment firms and will urge Congress to formalize the policy into law. “People live in homes, not corporations,” he wrote, framing the proposal as a push to restore homeownership opportunities for individuals and families.

The comments immediately sent ripples through financial markets. Shares of Blackstone, one of the largest institutional players in U.S. residential real estate, dropped as much as 9% following the announcement.

Institutional buying under scrutiny

Large investors such as Blackstone, JPMorgan Chase, and other asset managers have expanded aggressively into single-family housing over the past decade. Their activity accelerated after the 2008 financial crisis, when foreclosure sales created opportunities to buy homes at scale, particularly across fast-growing Sun Belt states.

These firms typically convert purchased homes into rental properties, betting on rising home values and strong demand for rentals. Supporters argue that institutional capital adds liquidity and professionalism to the market. Critics counter that bulk buying by corporations drives up prices and sidelines individual buyers.

Trump said further details on his housing agenda would be unveiled soon, adding that he plans to discuss housing affordability and related policies during a speech at the World Economic Forum in Davos later this month.

Housing market strained by supply and rates

The proposal comes at a time when the U.S. housing market remains under intense pressure. Limited supply, elevated mortgage rates, and years of price appreciation have made homeownership increasingly difficult for many Americans.

Mortgage rates have stayed above 6%, discouraging existing homeowners from selling. Many households remain locked into ultra-low rates secured during the pandemic, when the Federal Reserve slashed interest rates to near zero.

According to the National Association of Home Builders, U.S. home prices climbed nearly 55% between early 2020 and the third quarter of 2025, reflecting years of undersupply and strong demand.

Political Momentum, Economic Doubts

Lawmakers from both major parties have floated proposals to limit corporate participation in the housing market, arguing that investor dominance distorts prices and availability. Trump’s comments place him firmly in that camp, signaling a tougher stance toward Wall Street’s role in residential real estate.

Still, economists remain divided on whether such a ban would meaningfully improve affordability. Some warn that restricting institutional buyers could reduce investment in housing and shrink the supply of single-family rentals.

“This will not fix housing affordability,” said Jaret Seiberg, an analyst at TD Cowen. “It may increase purchases by owner-occupiers, but it would likely come at the cost of fewer rental homes.”

Market Impact and What Comes Next

While Trump’s remarks signal intent, details remain scarce. Key questions include how “large institutional investors” would be defined, whether existing holdings would be exempt, and how enforcement would work in practice.

For now, the proposal has reignited a contentious policy debate at a moment when housing affordability remains one of the most pressing economic issues in the United States. As Trump prepares to outline further proposals on the global stage in Davos, investors, homeowners, and policymakers will be watching closely to see whether rhetoric turns into concrete legislation.