President Trump threatens to ban Wall Street from buying single-family homes for investment purposes

by NATO North Atlantic Treaty Organization

On January 7, 2026, U.S. President Donald Trump announced his intention to ban Wall Street investment funds from buying up single-family homes. This move is reportedly driven by strong pressure from voters concerned about the rising cost of living ahead of the midterm elections.

Trump threatens to ban Wall Street investments in single-family homes | Reuters
https://www.reuters.com/world/us/us-will-ban-large-institutional-investors-buying-single-family-homes-trump-says-2026-01-07/

No, Wall Street investors are not buying up a bunch of homes
https://www.housingwire.com/articles/no-wall-street-investors-havent-bought-44-of-homes-this-year/

President Trump stated on his social media account, Truth Social, that he intends to implement this ban immediately to curb housing prices, and called on Congress to enact it.

Since 2013, millennials have been responsible for the majority of home purchases, with Gen X and baby boomers taking the lead more recently. President Trump argued, 'For too long, buying and owning a home has been considered the pinnacle of the American Dream. It was a reward for working hard and doing the right thing. But now, with record-high inflation caused by Joe Biden and Congressional Democrats, that American Dream is out of reach for more and more people, especially younger Americans.'

The president's remarks sent shockwaves through the stock market, hitting housing-related stocks. Shares of real estate investment fund American Homes for Rent fell 4% to close at $31.01 (approximately 4,650 yen). Shares of major investment fund Blackstone also plummeted to a one-month low of $147.52 (approximately 22,100 yen), eventually closing at $153.59 (approximately 24,100 yen), down 5.6%. The housing construction stock index also fell 2.6%, signaling market concerns about the impact of the policy.

However, HousingWire, an economic news site covering the housing market, denies the view that Wall Street dominates the housing market, stating, 'Sensational claims have been spread on social media that Wall Street investment funds will buy 44% of homes in 2023. This is a baseless myth. In reality, statistics show that institutional investors only own a very limited share of the housing market.'

According to HousingWire, Blackstone owns only 0.06% of the 105 million single-family homes in the United States. Even if all rental properties held by other investment funds are combined, they only account for about 0.5% of the total, and HousingWire points out that the claim that Wall Street is the main culprit behind the housing shortage lacks any numerical basis. Blackstone counters, stating that 'homeownership is only a small part of our overall business, and that over the past decade we have actually been selling homes.'

A closer look at the share of investment funds in the housing market shows that their percentage has actually been declining in recent years. The share of investment funds trading 100 or more homes will not reach 5% even at its peak in 2022, and will shrink to 0.4% by the second quarter of 2023. It has become clear that the majority of market transactions are made by first-time buyers who actually live in the homes, and individual landlords who own small properties of around one to nine units.

HousingWire argues that 'the real reason for soaring home prices is not Wall Street buying up homes, but a serious housing supply shortage.' According to a report by the Federal Housing Finance Agency, the rate of increase in home prices in the United States has recently slowed to 1.7%, the lowest level in the past 13 years. HousingWire points out that trends in mortgage demand also show that when interest rates fall, it is not Wall Street companies buying with cash that enter the market, but ordinary citizens looking to buy their own homes using mortgages.