> At a Glance
> – President Trump urges Congress to bar big investors from buying single-family homes
> – Institutional owners hold only 1% of U.S. stock, peaking at 4.2% in Atlanta
> – 3-4 million extra homes needed to ease price pressure, Goldman says
> – Why it matters: Proposal aims to help younger families, but supply shortage remains the bigger hurdle
President Trump wants Congress to outlaw large-scale investor purchases of houses, arguing the move will open doors for first-time buyers. The plan lands amid voter anxiety over record-high prices, yet data show institutions own a tiny slice of the market.
The Ban Proposal
In a social-media post, Trump said “People live in homes, not corporations” and vowed to press lawmakers for a statutory ban. The pledge follows his promise of “some of the most aggressive housing reform plans in American history” at next month’s World Economic Forum in Davos.
- Target: investors owning 100-plus properties
- Scope: single-family homes only
- Goal: tilt the market toward young families
What the Numbers Say
An August study by the American Enterprise Institute shows institutional ownership is concentrated but limited:
| Metro Area | Investor Share of Stock |
|---|---|
| Atlanta | 4.2% |
| Dallas | 2.6% |
| Houston | 2.2% |
| U.S. total | 1.0% |
Goldman Sachs estimates the country needs 3-4 million additional homes beyond normal construction to cool prices. Mortgage rates, still elevated after pandemic-era inflation, add to the affordability squeeze.
Construction Dilemma
Trump acknowledged that a building boom could undercut existing homeowners’ equity.
> “I don’t want to knock those numbers down because I want them to continue to have a big value for their house.”
He added the conflicting goals of protecting current values while expanding access for new buyers.
Separately, the president floated a 50-year mortgage to cut monthly payments, an idea critics say would erode household wealth by slowing equity growth.
Key Takeaways
- Institutional investors control just 1% of U.S. single-family homes
- Supply shortage, not investor activity, drives most price pain
- Trump will detail broader housing plans in Davos next month
The proposed investor ban grabs headlines, but solving the under-supply puzzle remains the critical-and politically thorny-challenge.
