Housing Policy

There is no evidence that institutional investors increase prices. Barring them from the market could actually exacerbate the housing crisis.

Ilya Somin | 1.7.2026 7:30 PM

Donald Trump announced today he plans to ban the purchase of single-family homes by large institutional investors. As with many Trump actions, this is not something the president actually has the authority to do. Real estate transactions and property ownership are generally subject to state, not federal authority. And any federal intervention - if constitutional at all - must at least be authorized by Congress.

In addition, barring large investors from the market is unlikely to mitigate the housing crisis, and could easily make things worse. There is no truth to claims that large investors are somehow monopolizing the market and thereby increasing prices. Large institutional investors (those who own 100 or more homes) own only about 3%........

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