Aiming to lower home prices, Trump seeks to ban Wall Street from investing in single-family homes

Donald Trump seeks to reduce housing prices. In another item on his affordability agenda, with which he seeks to keep Congress in 2026, the president seeks to ban Wall Street from investing in single-family homes. This was stated on his Truth Social account, where he indicated that he will seek to have Congress sign his intentions into law, although without providing further details.

According to Trump, the fact that investment funds, asset managers and other actors have bought homes on a large scale has had negative effects on the economy. In his view, this has reduced the supply of housing for families, also fueling rent inflation. By buying homes in bulk and then renting them out, the funds not only compete with families looking to purchase their first home, but by renting them out for other purposes they also cause prices to rise.

In this context, the president expressed himself on his social media, where he assured that he will seek to prohibit this practice in some way.

"For a very long time, buying and owning a home was considered the pinnacle of the American Dream. It was the reward for working hard, and doing the right thing, but now, because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans," he wrote.

Trump focused on single-family homes, which typically have their own driveway, backyard and garage. As the name implies, they are designed for a single family and are often seen in the suburbs. The Republican describes the measure as a way to protect "traditional homeownership" in the face of corporate power.

"It is for that reason, and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations. I will discuss this topic, including further Housing and Affordability proposals, and more, at my speech in Davos in two weeks," the president added.

The president's post had an immediate effect on the stock market, causing a drop in the shares of companies linked to the single-family rental market. Among them are Blackstone and Invitation Homes. However, Trump's initiative has not yet been formally implemented or detailed.