Effort to rein in Wall Street landlords could push US home prices up, investors say

• Housing prices have risen roughly 75% since 2016, more than double the overall CPI increase, though growth slowed to just 1.7% year-over-year in October 2024
• Wall Street firms own only about 3% of all single-family rental homes as of June 2022, and some like Blackstone have been net sellers for the past decade
• Experts argue affordability is a supply problem, not a demand issue, and federal policy has limited impact since housing regulations are mostly controlled by local governments

Summary: Trump's Wall Street Landlord Restrictions May Boost Home Prices

President Trump signed an executive order Tuesday aimed at restricting Wall Street investors from purchasing single-family homes, but financial experts warn the policy could inadvertently increase housing prices.

Key Policy Details:

The order directs federal regulators to prioritize home sales to individuals over institutional investors, mandates antitrust scrutiny of corporate home purchases, and calls for Congressional codification of these restrictions.

Expert Concerns:

Financial analysts argue the policy addresses the wrong problem. "The affordability issue when it comes to housing isn't a demand problem...it's a supply problem," said David Wagner of Aptus Capital Advisors. Michael Rosen of Angeles Investments noted that "policies that boost demand without increasing supply" will drive prices higher.

Market Context:

• U.S. housing prices have surged approximately 75% since 2016, outpacing the Consumer Price Index (CPI) by more than double
• However, price growth has moderated, with October showing just 1.7% year-over-year increase—the smallest in a decade
• Wall Street firms own roughly 3% of all single-family rental homes as of June 2022
• Major players include Blackstone, American Homes 4 Rent, and Progress Residential

Industry Response:

The National Association of Home Builders CEO Jim Tobin defended corporate investment, stating it "has been a driver of new home construction." Blackstone noted it has been a net seller of homes for the past decade.

Core Challenge:

Federal government has limited authority over housing supply, as zoning regulations remain under local control, complicating efforts to address the fundamental supply shortage driving affordability issues.