TLDR

  • President Trump has unveiled a proposal to prohibit institutional investors from acquiring single-family homes and will urge Congress to enact supporting legislation.
  • Following the news, Blackstone’s share price declined 5.6%, while rental firms Invitation Homes and American Homes 4 Rent saw drops of 6% and 4.3%, respectively.
  • Institutional buyers accounted for 6.8% of all home sales in the third quarter of 2025, a decrease from a high of 11.3% in late 2021.
  • Blackstone clarified that single-family homes constitute merely 2% of its real estate holdings and just 0.5% of its total business.
  • An analyst indicated the market selloff might be an overreaction, potentially creating a chance for investors to buy.

Shares of Blackstone ended Wednesday’s session 5.6% lower after President Trump stated on Truth Social his intention to prohibit large institutional investors from buying single-family homes. The President indicated he would ask Congress to pass a law formalizing the ban.

BX Stock Card

“I am immediately taking steps to ban large institutional investors from buying more single-family homes,” Trump wrote. He added that “people live in homes, not corporations.”

The declaration rattled stocks connected to the real estate sector. Invitation Homes plunged 6%, and American Homes 4 Rent declined 4.3%. The iShares U.S. Home Construction ETF retreated 2.4%.

Trump’s post arrives amid persistent concerns over housing affordability for Americans. According to S&P Case-Shiller indices, national home prices have surged over 50% since March 2020. The announcement also comes as the housing market is projected to experience its third straight year of sales hitting a 30-year low.

Institutional investors have grown into a noticeable force in the housing market in recent years. Analytics provider Attom classifies them as non-lending entities that buy a minimum of 10 properties annually. These purchasers made up 6.8% of all home sales in Q3 2025, falling from a peak share of 11.3% in late 2021.

Blackstone Responds to Market Reaction

Blackstone oversees more than $1 trillion in assets and has assembled one of the nation’s biggest rental housing portfolios. The company owns hundreds of thousands of single-family residences and apartments in numerous markets.

A spokesperson for Blackstone informed several news organizations that single-family homes account for approximately 2% of the firm’s real estate assets under management. This translates to only 0.5% of Blackstone’s total operations. The spokesperson further noted that the firm has been a net seller of homes for the past ten years, reducing its holdings by more than 20%.

Detractors have charged Blackstone with purchasing properties in volume, thereby shrinking supply in a market already facing shortages. The company has said previously that it holds less than 1% of the available housing stock in any market where it is active.

Senator Elizabeth Warren voiced her backing for legislative measures. The Democrat from Massachusetts stated she has pushed for years to restrict Wall Street’s home acquisitions. Warren, who co-chairs the Senate Banking Committee, encouraged Trump to endorse the ROAD to Housing Act, which cleared the Senate in October.

Market Reaction May Be Overdone

KBW analyst Jade Rahmani proposed that the stock declines may be exaggerated. He commented that the selloff in single-family rental REITs and homebuilder stocks “seems excessive and could present a buying opportunity.”

Rahmani observed that companies such as Invitation Homes and American Homes 4 Rent have the flexibility to adjust their approaches. These businesses could transition into direct development via their own construction arms. Alternatively, they might sell parts of their current portfolios to benefit from rising home values.

Opendoor’s stock tumbled 11.7% even though CEO Kaz Nejatian asserted the company is “definitely not an institutional investor.” Opendoor operates by buying and selling homes quickly rather than holding them long-term. Nejatian expressed the company’s support for Trump’s proposed policy.

The National Rental Home Council remarked that professional single-family rental operators constitute a minor portion of the total housing market. A spokesperson said the industry continues to prioritize serving renters while also encouraging routes to homeownership. The organization stated it anticipates discussions with the White House on the matter.

Trump mentioned he would elaborate on his housing and affordability plans at the Davos conference scheduled for late January.