Trump Moves to Block Investors From Buying Homes, Shifts Power to Individual Buyers

President Donald Trump has announced plans to ban large institutional investors from buying single-family homes, in a move to improve housing affordability.

Policy intent and legislative push

In a social media post on January 7, 2026, Trump said home ownership has become increasingly difficult for many Americans and argued that corporate ownership is part of the problem.

Trump said he intends to act quickly to block future purchases of single-family homes by major investment firms and will urge Congress to formalize the restriction through legislation. His message emphasized the idea that housing should primarily serve families and individuals rather than large financial institutions.

Market reaction and stock declines

Financial markets responded swiftly to the announcement. Shares of Blackstone fell more than 5 percent, reflecting investor concern over potential restrictions on large-scale residential investment.

Other housing-related stocks also declined, including Builders FirstSource, which dropped more than 5 percent, and Invitation Homes, which fell 6 percent.

Impact on vacation rentals

The proposed ban would halt new home acquisitions by large operators such as Invitation Homes and Blackstone, limiting the growth of portfolios used for short-term rentals through partnerships with platforms like Airbnb and Vrbo.

In high-demand vacation markets where investor-owned properties make up a significant share of available supply, slower inventory growth could push nightly rates a bit higher as demand continues to rise.

Meanwhile, individual home buyers could gain an advantage as competition from deep-pocketed firms decreases. Short-term rental platforms such as Airbnb may also see modest growth in listings from independent owners who are better positioned to purchase homes under the proposed rules.

Background on institutional ownership

After the 2008 financial crisis, widespread foreclosures created opportunities for Wall Street firms, such as Blackstone and other private equity investors, to purchase large numbers of homes at discounted prices.

Over time, these firms built large rental portfolios and became influential landlords in certain housing markets.

Ongoing debate

While institutional investors have faced criticism for their role in the housing market, some question whether banning their participation would meaningfully reduce home prices.

Blackstone has said that institutional investors account for roughly 0.5 percent of all single-family homes in the US, raising doubts about how much a ban would affect affordability.

Blackstone has been active in the US hospitality market recently. For example, in December 2025, the firm bought the Four Seasons Hotel in San Francisco for $130 million.

Photo by hajperlink on Unsplash