Trump Targets Wall Street to Boost Family Homeownership

Buying a first home just got a fighting chance against Wall Street's deep pockets.

President Trump signed an executive order Tuesday to restrict large institutional investors from buying single-family homes that families could purchase instead. The goal is simple: give everyday Americans a better shot at homeownership by leveling the playing field.

Since the 2008 financial crisis, Wall Street firms like Blackstone and American Homes 4 Rent have scooped up thousands of foreclosed properties. By 2022, institutional investors owned around 450,000 single-family rental homes nationwide. That's 3% of all single-family rentals, according to a Government Accountability Office study.

The new order directs federal agencies to prioritize selling foreclosed properties to individuals instead of big investors. It also instructs the Justice Department and Federal Trade Commission to review large investor acquisitions for anti-competitive practices and crack down when needed.

Federal housing programs will now restrict sales of single-family homes to Wall Street investors. The administration will also prepare legislative recommendations to turn these policies into permanent law.

The order follows another major housing move from earlier this month, when Trump directed Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds to lower housing costs. Together, these policies tackle affordability from multiple angles.

The Ripple Effect

This policy could reshape neighborhoods across America. When institutional investors buy up homes, they convert them to rentals, shrinking the supply available for families to own. Fewer homes for sale means higher prices and fiercer competition.

By keeping more homes in the hands of families rather than investment portfolios, communities may see more stable neighborhoods. Homeowners tend to invest more in their properties and stay longer than renters, strengthening local ties.

The approach finds unlikely allies too. Democrats have pushed similar bills for years, arguing corporate homebuying drives up housing costs. Now both parties are moving in the same direction on an issue that affects millions of Americans struggling with affordability.

For families who've watched their homeownership dreams slip away to cash offers from faceless corporations, this shift offers something rare in today's housing market: hope that the next house on the market might actually be within reach.