On Wednesday, United States President Donald Trump announced that his administration is taking steps to block major institutional investors from purchasing single-family homes. This move is intended to curb housing prices.
The announcement was made through a post on Truth Social, where Trump stated his intention to urge Congress to "codify" the ban, effectively transforming it into law.
In addition, the president is expected to discuss further housing and affordability proposals during a speech at the World Economic Forum in Davos.
Trump framed the initiative as a means to prioritize residential use over corporate interests, declaring, "People reside in homes, not corporations."
"For many years, owning a home represented the pinnacle of the American Dream. It was the reward for hard work and integrity. However, due to the unprecedented inflation triggered by Joe Biden and the Democrats in Congress, that dream is slipping away from too many, especially younger Americans," Trump explained.
By "major institutional investors," Trump refers to companies, investment funds, and financial corporations that purchase large volumes of homes—particularly single-family residences—not to inhabit them but to rent them out or speculate on their value.
Specific details regarding the mechanics of the ban, the definition of "major institutional investors," or the timeline for its implementation remain unclear, aside from the intent to legislate it and introduce additional related proposals.
New Mortgage Restrictions Announced
In March 2025, Trump's administration unveiled new restrictions on access to mortgage loans backed by the Federal Housing Administration (FHA). These loans were limited exclusively to U.S. citizens and legal permanent residents.
This measure, presented as a strategy to safeguard public funds and "close gaps" in the system, excluded thousands of immigrants with temporary status, including beneficiaries of programs like DACA, asylum seekers, and individuals filing taxes with an ITIN number.
The policies marked a shift toward a more restrictive housing policy, ending the flexibilities introduced during Joe Biden's presidency.
Impacts on the Housing Market
The change occurred amid a worsening real estate crisis, particularly affecting South Florida.
In September 2025, Cuban-American Congresswoman María Elvira Salazar highlighted that purchasing a home in Miami was becoming increasingly unattainable for working families, due to record prices and limited supply.
Her call for "bold solutions" coincided with local efforts to mitigate the issue through affordable housing programs. However, high demand and restrictive requirements highlighted the limitations of these initiatives.
For many immigrants and young professionals, owning a home seemed increasingly out of reach, turning into a distant goal in a market pressured by speculation and political decisions.
Understanding Trump's Housing Policies and Their Impact
What is Trump's rationale for prohibiting large investors from buying single-family homes?
Trump argues that owning a home has traditionally been part of the American Dream, and he believes that inflation and corporate interests are pushing this dream out of reach for many Americans, especially the younger generation.
How will Trump's proposed housing policies affect immigrants and young professionals?
The proposed policies are likely to make it more difficult for immigrants and young professionals to achieve homeownership due to stricter mortgage lending rules and reduced housing availability, which are expected to drive up competition and prices.
What are the expected consequences of the new FHA-backed mortgage restrictions?
The restrictions are anticipated to limit access to affordable mortgage options for temporary status immigrants, potentially increasing the financial burden on those aspiring to buy homes, and possibly leading to greater inequality in the housing market.