Trump’s aim to ban institutional investors from buying single-family homes faces challenges

President Donald Trump’s plan to ban institutional investors from buying single-family homes faces legal and market uncertainty.

In a recent social media post, Trump said he would “immediately take steps” to halt large investors from purchasing additional single-family homes and would ask Congress to develop legislation to that end. He positioned the action as a defense of prospective home buyers who have struggled to compete with Wall Street-backed buyers.

The move sent “shockwaves through housing and real estate investment markets,” according to a Globe St report. Trump’s gambit highlights growing political pressure at all levels of government to address the nation’s affordability crisis.

The policy would not affect existing holdings, but Trump faces legal challenges in enacting such a ban. Legal analysts say a prohibition would require legislative backing and could draw constitutional challenges from corporate owners over property rights infringements.