President Donald J. Trump has issued an executive order aimed at limiting the ability of large institutional investors to purchase single-family homes, a move intended to help American families gain better access to homeownership.
The order states: "Buying and owning a home has long been considered the pinnacle of the American dream and a way for families to invest and build lifetime wealth. But because of the recent high inflation and interest rates caused by the previous administration, that American dream has been increasingly out of reach for too many of our citizens, especially first-time homebuyers."
According to the order, there is concern that large Wall Street firms have increased their share of single-family home purchases, making it harder for individual buyers, particularly young families, to compete. The President’s directive says: "Hardworking young families cannot effectively compete for starter homes with Wall Street firms and their vast resources. Neighborhoods and communities once controlled by middle-class American families are now run by faraway corporate interests. People live in homes, not corporations. My Administration will take decisive action to stop Wall Street from treating America’s neighborhoods like a trading floor and empower American families to own their homes."
The executive order directs several federal agencies—including the Departments of Agriculture, Housing and Urban Development (HUD), Veterans Affairs, General Services Administration (GSA), and Federal Housing Finance Agency—to issue guidance within 60 days. This guidance is meant to prevent government-supported entities from enabling or facilitating the acquisition of single-family homes by large institutional investors when those homes could otherwise be purchased by individual owner-occupants.
Exceptions will be made for certain properties such as build-to-rent communities that are specifically planned and constructed as rental housing.
Further measures outlined in the order require reviews by Treasury officials on rules related to investor acquisitions of single-family homes. The Attorney General and Federal Trade Commission are also instructed to review major acquisitions in local markets for anti-competitive practices, focusing on coordinated vacancy or pricing strategies among large investors.
Additionally, HUD will require more disclosure from owners or managers involved in federal housing assistance programs regarding ownership changes or affiliations with institutional investors.
A legislative recommendation is expected from White House staff to codify these policies into law so that similar restrictions can be established beyond this executive action.
"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," according to President Trump’s statement in the order.
The order clarifies that its implementation must align with existing laws and available appropriations, stating it does not create enforceable rights against the United States or its agencies.
