US will ban Wall Street investors from buying single-family homes, Trump says

• The ban specifically targets large institutional investors, preventing them from buying single-family residential homes
• Trump will seek Congressional action to formalize the ban into law and present further housing proposals at Davos
• The initiative aims to address housing affordability by reducing competition from corporate buyers in the residential market

Summary

Key Announcement:

President Donald Trump announced on January 7, 2026, that his administration will ban large institutional investors from purchasing single-family homes in an effort to reduce home prices. The announcement was made via Truth Social.

Implementation Details:

Trump stated he will request Congress to codify this ban into law. He plans to discuss additional housing and affordability proposals during an upcoming speech at the Davos World Economic Forum. Trump emphasized that "People live in homes, not corporations," signaling the administration's stance against corporate ownership of residential properties.

Market Implications:

This proposed ban could have significant ramifications for:

• Real Estate Investment Trusts (REITs) and institutional investors heavily invested in single-family rental portfolios
• Private equity firms that have expanded into residential real estate over recent years
• Housing market dynamics, potentially increasing inventory available to individual homebuyers
• Rental market supply, as institutions have been major players in the single-family rental sector

Sectors Affected:

The announcement directly impacts Wall Street investors, institutional asset managers, and the broader real estate investment sector that has increasingly acquired single-family homes as investment vehicles.

Timeline:

The proposal requires Congressional approval, meaning implementation timing remains uncertain. Further details are expected at the Davos World Economic Forum.

Market Context:

This move addresses growing concerns about housing affordability and institutional investors pricing out individual homebuyers in the residential real estate market, a trend that accelerated in recent years.