Trump plans to ban institutional investors from purchasing single-family homes. Related sector stocks are hit hard.

On Wednesday, U.S. President Trump stated on social media platforms that he plans to take measures to prohibit large institutional investors from continuing to purchase single-family homes, and will urge Congress to legislate on the issue. In his post, Trump wrote, "I will take immediate action to ban large institutional investors from buying more single-family homes, and will urge Congress to put it into law. People live in houses, not companies." He also stated that he will further discuss housing and affordability reform plans in a speech at Davos in two weeks, but did not disclose specific implementation details. After the announcement, stocks related to real estate were under pressure. Some analysts pointed out that the short-term selling pressure may provide a buying opportunity in the near term. The policy discussion comes against the backdrop of a persistently sluggish U.S. housing market. Data shows that U.S. home sales may be at their lowest level in 30 years for the third consecutive year. In addition, Trump stated in December of last year that he would announce the "most radical housing reform plan in U.S. history" in early 2026, making housing policy a market focus. Over the past five years, U.S. house prices have seen a significant increase. According to the S&P CoreLogic Case-Shiller index, national home prices have risen by over 50% since March 2020. One important reason for this is the influx of Wall Street funds into the market. Real estate data company Attom defines "institutional investors" as non-lending entities that buy at least 10 properties within a year. Its data shows that institutional investors accounted for approximately 6.8% of all U.S. residential transactions in the third quarter of 2025, peaking at 11.3% by the end of 2021. However, the rise in house prices is not solely driven by institutional buying. Structural demand brought about by millennials entering the peak home-buying age, along with a prolonged contraction in supply by developers following the financial crisis of 2008-2009, as well as a significant decline in financing costs amid a low-interest-rate environment, have all collectively pushed up house prices and exacerbated bidding wars. The prohibition of institutional investors from purchasing single-family homes may have bipartisan support in Congress. Senator Warren stated in a declaration, "Congress should push legislation to prevent corporate investors from hoarding homes," and has long advocated for restrictions on Wall Street purchasing American family homes. She also called on the president to support the "ROAD to Housing Act" passed by the Senate in October of last year. In terms of market reaction, stocks of two major companies in the single-family home rental sector, Invitation Homes (INVH.US) and American Homes 4 Rent (AMH.US), fell by 6.01% and 4.29% respectively. Blackstone (BX.US), involved in housing leasing and real estate, saw a 5.57% drop in its stock price. Real estate platform Opendoor (OPEN.US) dropped by 11.69%. Opendoor CEO Kaz Nejatian publicly praised Trump's actions on social media, and told the media that the company is "not an institutional investor," with a business model of buying and selling homes rather than holding them long-term. "We support what the president is doing," he said. KBW analyst Jade Rahmani stated in a research report that the decline in some stocks was "overreacted." He pointed out that although policy statements may bring headline risks, the market reactions of single-family home REITs and some homebuilders have been extreme, potentially offering medium to long-term investment opportunities. He added that related REITs can respond to potential policy changes by shifting to self-development projects, adjusting capital allocation, or selling some existing assets to capitalize on rising house prices.