President Donald Trump announced Wednesday a major new housing proposal aimed at restoring affordable homeownership by preventing large institutional investors from buying up single-family homes and turning them into long-term rental properties.
The plan comes as home prices and mortgage rates remain elevated, leaving many middle-class Americans — especially first-time buyers — struggling to compete against deep-pocketed Wall Street firms.
Trump said the goal is simple: return the housing market to working families, not corporate landlords.
“For decades, owning a home was the ultimate symbol of success in America,” Trump said in a statement on Truth Social. “But after years of record inflation and failed economic policies under Joe Biden and congressional Democrats, that dream has become increasingly out of reach.”
Trump said he plans to stop large institutional investors from purchasing additional single-family homes and will urge Congress to permanently codify the policy. “Homes are for people — not corporations,” he added.
Wall Street Reacts as Housing Debate Intensifies
Trump said the proposal will be part of a broader affordability agenda he plans to discuss during meetings connected to the World Economic Forum in Davos, Switzerland.
Financial markets reacted swiftly. Shares of Invitation Homes, the nation’s largest owner of single-family rental homes, declined following the announcement. Major investment firms including Blackstone and Apollo Global Management also saw their stock prices dip.
The companies did not immediately respond to requests for comment.
How Corporate Investors Reshaped the Housing Market
Following the 2008 financial crisis, institutional investors began purchasing large numbers of foreclosed homes, often buying entire neighborhoods at discounted prices. While the strategy proved profitable for investors, housing advocates argue it reduced supply and pushed prices higher for everyday buyers.
By early 2025, investors accounted for roughly 30 percent of all single-family home purchases nationwide. In fast-growing metro areas like Houston, Phoenix, Miami, and Las Vegas, investor purchases exceeded 20 percent of total home sales during certain periods.
Federal data also shows institutional investors now own a significant share of rental homes in major cities, limiting inventory traditionally available to first-time and fixed-income buyers.
Rising Prices, Higher Rates, and Fewer First-Time Buyers
Housing affordability has deteriorated sharply in recent years. According to the National Association of Realtors, the national median price for a single-family home climbed above $426,000 in late 2025, after reaching record highs earlier in the year.
At the same time, mortgage interest rates remain above 6 percent, dramatically increasing monthly payments compared to just a few years ago.
As a result:
- The average first-time homebuyer is now 40 years old
- First-time buyers account for just 21 percent of total home purchases
- Many retirees and middle-income families are being priced out
These trends have raised concerns about long-term economic stability and wealth-building opportunities for future generations.
Can the Plan Be Implemented?
Housing experts note that limiting institutional investor purchases could face legal challenges without congressional approval. Still, many agree the issue has become impossible to ignore.
“The intention is to reduce corporate competition and keep homes affordable for families,” one mortgage executive said. “The challenge will be execution.”
Part of Trump’s Broader Cost-of-Living Strategy
Trump’s housing proposal is part of a wider economic agenda aimed at reducing everyday costs for Americans. Other proposals include lowering prescription drug prices, increasing domestic energy production, streamlining housing construction regulations, and urging the Federal Reserve to reduce interest rates more aggressively.
For millions of Americans watching the housing market drift further out of reach, Trump’s message is clear: the American Dream should belong to families again — not Wall Street.