US President Donald Trump announced on Wednesday that his administration is moving to ban large institutional investors from purchasing single-family homes across the United States, framing the proposal as a way to address the nation’s ongoing housing affordability crisis.
Trump made the announcement in a post on his Truth Social account, stating that the measure aims to restore the traditional path to homeownership for ordinary Americans, especially younger families.
He wrote, “For a very long time, buying and owning a home was considered the pinnacle of the American Dream,” adding that rising costs have made homeownership “increasingly out of reach for far too many people.”
He stressed that “people live in homes, not corporations,” and said he would call on Congress to codify the ban into law. The president also indicated he plans to detail his broader housing and affordability strategy at the World Economic Forum in Davos later this month.
What are single family homes?
Single-family homes are standalone residential structures designed and used exclusively for occupancy by one family or household as a single dwelling unit. These properties provide independent living space with private entrances, kitchens, bathrooms, and utilities, distinguishing them from multi-family buildings like apartments or duplexes.
How have industry insiders reacted to Trump’s threat?
Trump’s threat to ban institutional investors from buying single-family homes in the US has sparked backlash among industry insiders, who believe they are being scapegoated for the ongoing housing affordability crisis.
“Blaming institutional ownership for housing unaffordability is inaccurate and gets both the problem and the solution wrong,” Sean Dobson, chairman, chief executive officer and chief information officer of Amherst, a real estate investment and development firm, told Newsweek.
“Our industry is not the cause of the housing crisis, it is part of the solution,” he added.
“Institutional investors play a relatively small role in the market for owning single-family homes,” Cato Institute Vice President and Director of the Center for Monetary and Financial Alternatives, Norbert Michel, said in a statement.
House prices soared to record levels in the US during the pandemic, before slipping back. The median sale price stood at $410,800 last year, according to the US Census Bureau.