Trump Proposes Ban on Institutional Home Buyers to Aid Young Families

Fri Jan 09 2026 01:21:53 GMT+0200 (Eastern European Standard Time)

In a bid to tackle housing affordability, President Donald Trump has announced plans to prohibit large institutional investors from purchasing residential properties, advocating for more opportunities for younger families seeking to buy their first homes.

President Donald Trump has proposed a ban on large institutional investors purchasing homes, asserting that it would enhance affordability for young families. While addressing public concerns ahead of the midterm elections, Trump’s proposal overlooks the broader issues of housing supply and escalating prices, which continue to burden the housing market. An analysis reveals such investors make up only a small fraction of home purchases, with declining construction rates exacerbating the affordability crisis.

WASHINGTON (AP) — President Donald Trump stated on Wednesday that he aims to prevent large institutional investors from acquiring houses, asserting that such a ban would facilitate homeownership for younger families.

Amid mounting pressures regarding housing affordability as midterm elections approach, Trump is capitalizing on ongoing concerns that corporate ownership of homes hinders traditional buyers from purchasing properties, consequently increasing the number of renters. Nonetheless, his strategy does not adequately tackle the primary challenge within the housing market: the severe lack of new home construction and the rapid increase in prices that outpace income growth.

“People live in homes, not corporations,” Trump remarked in a social media announcement, urging Congress to implement his proposed prohibition.

Last month, Trump declared in a significant address that he would introduce “some of the most aggressive housing reform plans in American history” within the year. He is expected to elaborate further on housing and affordability during the World Economic Forum in Davos, Switzerland, an event known for its gathering of CEOs and financial elites who often contradict Trump’s populist stance.

Previously, Trump had suggested extending the traditional 30-year mortgage to 50 years as a means to lower monthly payments, although this idea faced criticism for potentially diminishing individuals' ability to build housing equity and wealth.

In proposing a ban on institutional investors, it's important to note that these entities currently account for merely 1% of total single-family housing stock, according to a recent analysis by the American Enterprise Institute, a right-leaning think tank based in Washington D.C. This analysis defines institutional buyers as those owning a minimum of 100 properties.

This institutional ownership varies regionally, with higher concentrations observed in cities like Atlanta (4.2%), Dallas (2.6%), and Houston (2.2%). However, these investors do not dominate the housing market, often being more prevalent in lower and middle-income neighborhoods.

The greater issue at hand remains the deficiency in new home construction, as Goldman Sachs projected that an additional 3 million to 4 million homes would need to be built to effectively alleviate price pressures. In light of rising mortgage rates and inflation post-pandemic, monthly mortgage payments have surged significantly, outpacing income growth.

Despite acknowledging the necessity of increased construction, Trump expressed concerns about how it might affect existing home values, stating his apprehension about existing homeowners suffering potential losses in their net worth. “I don’t want to knock those numbers down because I want them to continue to have a big value for their house,” Trump explained. “At the same time, I want to make it possible for young people out there and other people to buy housing. In a way, they’re at conflict.”