Trump vows to keep ‘American Dream’ alive by guarding homes from corporate buyers. Here’s how small investors can profit

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Elevated lodging prices are daunting capable for today’s homebuyers — but competing with trillion-dollar institutions makes the situation adjacent tougher. President Donald Trump says he’s trying to enactment a halt to that.

“For a precise agelong time, buying and owning a location was considered the pinnacle of the American Dream,” Trump wrote connected Truth Social connected Jan. 7 (1). “That American Dream is progressively retired of scope for acold excessively galore people, particularly younger Americans. It is for that crushed and overmuch more, that I americium instantly taking steps to prohibition ample organization investors from buying much single-family homes and I volition beryllium calling connected Congress to codify it.”

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Trump emphasized that “people unrecorded successful homes, not corporations,” adding that he’ll laic retired further lodging and affordability proposals astatine the upcoming World Economic Forum successful Davos, Switzerland.

The announcement sent shockwaves done the market. Shares of Blackstone (BX) — the world’s largest alternate plus manager with much than $1.2 trillion successful assets nether absorption — tumbled arsenic overmuch arsenic 9.3% earlier closing down 5.6% connected Jan. 7. Single-family rental REITs were deed arsenic well: American Homes 4 Rent (AMH) slid 4.3%, portion Invitation Homes (INVH) fell 6.0%.

Institutional investors don’t predominate the lodging marketplace — but they inactive play a notable role. A 2023 study from Parcl Labs recovered that institutions ain 3.4% of U.S. single-family homes — and the biggest players, those holding much than 1,000 units, relationship for lone 0.73% (2).

Yet their enactment has had measurable effects.

A probe insubstantial from the Federal Reserve Bank of Philadelphia recovered that the surge successful organization buyers successful the single-family residential marketplace betwixt 2006 and 2014 contributed to 58% of the summation successful the existent location terms maturation during that play — and that these organization investors were liable for 75% of the diminution successful homeownership rates (3).

Other experts, however, constituent to a deeper, structural issue: supply. In 2024, Federal Reserve Chair Jerome Powell warned, “The existent contented with lodging is that we person had and are connected way to proceed to have, not capable lodging (4).” He pointed to the trouble of uncovering and zoning onshore successful desirable areas, asking, “Where are we going to get the supply?”