January 7,2026
RED FM News Desk
U.S. President Donald Trump announced on Wednesday that his administration is taking steps to prohibit Wall Street investors from purchasing single-family homes, a move aimed at reducing home prices and challenging private-equity landlords.
In a post on Truth Social, Trump said he would take immediate action and seek Congressional support to codify the measure. He also indicated he would discuss additional housing and affordability proposals during a speech at the Davos World Economic Forum.
“For a very long time, buying and owning a home was considered the pinnacle of the American Dream,” Trump wrote. “People live in homes, not corporations.” He noted that inflation has made homeownership increasingly out of reach for many Americans.
Wall Street firms, including Blackstone, have bought thousands of single-family homes since the 2008 financial crisis, a trend critics say has contributed to rising rents and housing costs. Housing advocacy groups and lawmakers, particularly Democrats, have previously condemned the practice.
Trump’s announcement sent homebuilder and institutional landlord stocks tumbling. American Homes 4 Rent fell to a near three-year low of US$28.84 before trading was halted for volatility and later recovered slightly to $30.56, down nearly six per cent. Blackstone shares hit a one-month low of $147.52 and were last down about five per cent at $154.49. The PHLX housing index fell 2.1 per cent, marking its largest daily drop since November 17.
It remains unclear what legal authority the administration would use to enforce the ban on private market purchases or what specific executive actions or Congressional changes would be required. The White House did not immediately respond to a request for comment, and Trump was scheduled to sign unspecified executive orders later Wednesday.
The move comes as Trump faces growing pressure to address concerns over the cost of living ahead of midterm elections that could determine whether Republicans retain control of Congress. Public concern over housing affordability has intensified even as Trump has previously attributed inflation to his Democratic predecessor.
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