_WHAT’S HAPPENING_
President Donald Trump signed an executive order on Tuesday aimed at blocking Wall Street firms from buying single-family homes, a move designed to make homeownership more affordable for American families.
The order, titled "Stopping Wall Street from Competing with Main Street Homebuyers," directs federal agencies to draft new restrictions within 60 days on institutional purchases of single-family homes. It also tells the Justice Department and FTC to closely review Wall Street property deals for anti-competitive behavior and to crack down on coordinated tactics that keep apartments empty or push rents higher.
_THE FACTS_
Trump’s order directs the DOJ and FTC to review major acquisitions by large investors "for anti-competitive effects.”
This is similar to legislation that progressive Democrats like Sen. Elizabeth Warren (MA) have advocated for “for years.”
Treasury Secretary Scott Bessent must define “large institutional investor” and “single-family home” within 30 days.
Wall Street firms have purchased thousands of single-family homes since the 2008 financial crisis.
By June 2022, institutional investors owned around 450,000 homes, representing roughly three percent of all single-family rental homes nationwide.
In 22 specific US counties, primarily in Sun Belt metros like Dallas, Atlanta, and Phoenix, institutional investors own between five and ten percent of housing stock.
The median age of first-time homebuyers shot up to 40 in 2024.
Republican Sen. Josh Hawley (MO) announced plans to introduce legislation codifying a ban on institutional investors.
Republican Rep. Pat Harrigan (NC) introduced the "Families First Housing Act of 2026," establishing a 180-day window that gives families priority to buy federally backed homes before investors can bid.
President Trump also announced that the government will buy $200 billion in mortgage bonds to help bring down housing costs.
_OUR TAKE_
This proposal taps into a popular narrative that large investors are responsible for the housing crunch, but the reality is that most rental housing is owned by small landlords. Investors who own more than 100 homes currently control only about one percent of the US housing stock.
Even at their peak, large investors never accounted for more than three percent of annual home purchases. Their brief surge during 2021–22 was driven by ultra-low interest rates, and many have since sold as rates rose. The real problem is the lack of housing, driven largely by illegal and legal migration. Blaming Wall Street may be an easy political move, but only by building more homes will it meaningfully lower prices.
