Photo by Gustavo Zambelli

In a Truth Social post, US president Donald Trump says he’s “immediately taking steps to ban large institutional investors from buying more single-family homes,” and will call on Congress to legislate those steps. He promises more details in his coming address to the World Economic Forum.

Absent those details, it’s impossible to know if his proposal will make it past the courts, or whether Congress is likely to buy in.

But of course the biggest question is whether banning home purchases by the likes of Blackstone, American Homes 4 Rent, and Invitation Homes would truly make housing more affordable for Americans.

Short answer: It wouldn’t.

Why?

A lot of the negative response from economists (some of them admittedly affiliated with those institutional investors or related businesses) centers around the fact that large investors — those who own more than 100 homes........

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