Trump signs order to block Wall Street from buying single-family homes in bid to drive down rents

• The order instructs the Justice Department and FTC to review institutional purchases for antitrust violations and prioritize enforcement against 'coordinated vacancy and pricing strategies' by large investors
• Large institutional investors (owning 100+ homes) control less than 1% of all single-family homes nationwide and just 2-3% of single-family rentals, though ownership is concentrated in Sun Belt markets
• In 22 US counties concentrated in Dallas, Houston, Atlanta, Phoenix and other metro areas, institutional investors own between 5-10% of housing stock, creating outsized local market impact

Summary

President Trump signed an executive order Tuesday titled "Stopping Wall Street from Competing with Main Street Homebuyers," aimed at restricting institutional investors from purchasing single-family homes. The order gives federal agencies 60 days to develop policies governing these purchases and directs the Justice Department and Federal Trade Commission to review large-scale acquisitions for antitrust violations, particularly targeting "coordinated vacancy and pricing strategies" in local rental markets.

The administration plans to work with Congress on legislation to permanently codify these restrictions, though legal analysis indicates congressional approval is necessary for a nationwide ban, as executive action alone lacks statutory authority.

Key Companies: Blackstone, American Homes 4 Rent, and Progress Residential are named as major institutional buyers that acquired thousands of homes following the 2008 financial crisis.

Market Data: While politically significant, large institutional investors (firms owning 100+ homes) control less than 1% of all single-family housing nationwide and just 2-3% of single-family rentals. However, their presence is concentrated in Sun Belt markets: in 22 U.S. counties—primarily in Dallas, Houston, Atlanta, Phoenix, Jacksonville, Charlotte, Tampa, and Memphis—they own 5-10% of housing stock. In Atlanta's metro area, institutional ownership reaches 27%.

Market Context: Overall, all investor types (including small landlords) own approximately 20% of single-family homes and accounted for one-third of home purchases in Q2 last year.

Implications: The order signals heightened regulatory scrutiny of institutional real estate investors, potentially impacting large asset managers' residential strategies and setting up congressional debate over housing market regulation. Success depends on legislative action.