Trump Signs Executive Order Targeting Wall Street Homebuyers to Boost Housing Affordability

BY COMFORT OGBONNA

U.S. President Donald Trump on Tuesday signed an executive order aimed at restricting large institutional investors from buying single-family homes, in a bid to make housing more accessible and affordable for American families. The White House said the measure is intended to preserve the supply of homes for individuals and limit competition from corporate buyers, particularly in the single-family rental market.

“To preserve the supply of single-family homes for American families and increase the paths to homeownership, it is the policy of my Administration that large institutional investors should not buy single-family homes that could otherwise be purchased by families,” Trump stated in the order. The move comes amid growing political pressure ahead of congressional elections this year, as voters grapple with rising housing costs and affordability challenges.

The executive order builds on a series of initiatives Trump has introduced this month to ease housing costs. Earlier in January, he directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities to help reduce mortgage rates and improve access to homeownership. Tuesday’s order expands the administration’s efforts by instructing federal agencies to promote sales of homes to individual buyers, limit federal programs from facilitating corporate purchases, and review acquisitions by large investors for anti-competitive practices.

The Justice Department and the Federal Trade Commission will play key roles under the order. They are tasked with reviewing purchases by institutional investors in the single-family home market, prioritizing enforcement against practices that may disadvantage individual buyers. The order also directs federal agencies to ensure that individuals and non-institutional buyers have priority when purchasing foreclosed properties.

Additionally, the White House plans to prepare legislative recommendations aimed at codifying these policies into law, further preventing large corporate landlords from acquiring single-family homes at the expense of families.

Wall Street institutions such as Blackstone, American Homes 4 Rent, and Progress Residential have acquired tens of thousands of single-family homes since the 2008 financial crisis, when a wave of foreclosures flooded the market. By mid-2022, institutional investors owned approximately 450,000 homes—roughly 3% of all single-family rental homes in the U.S., according to a 2024 Government Accountability Office study.

Trump’s move effectively positions him alongside Democrats, who have long criticized the rise of corporate homebuying. Critics argue that large investors have contributed to rising home prices and reduced opportunities for families to purchase homes, and they have unsuccessfully sought legislation to curb the trend. The executive order signals a rare bipartisan convergence on housing policy, though its enforcement and impact on the market remain to be seen.

With the executive order in place, the administration aims to increase homeownership opportunities for American families while slowing the expansion of institutional landlords, potentially reshaping the single-family housing market in the years ahead.