President Donald Trump has taken decisive action against large-scale institutional investors in the housing market, signing an executive order that prohibits Wall Street firms from bulk purchases of single-family homes. The move represents the administration's latest effort to address housing affordability concerns across the United States.
Executive Order Targets Institutional Home Buyers
The executive order, signed on Tuesday, specifically aims to restrict what the administration terms "large institutional investors" from acquiring residential properties that would otherwise be available to individual homebuyers. This action follows recent suggestions from the president about potentially purchasing $200 billion in mortgage bonds to help lower interest rates for prospective homeowners.
Defining the Scope of the Ban
The administration now has thirty days to establish a precise definition of "Wall Street investor" under the new order. Based on the order's text, the focus appears to be on major financial institutions and investment firms that purchase homes at a rate of hundreds of thousands per quarter.
Within sixty days, government agencies must finalise guidelines that would prevent government-sponsored enterprises from assisting these large investors in acquiring single-family homes that could be purchased by owner-occupants instead.
Regulatory Review of Property Acquisitions
The executive order further mandates that the U.S. Attorney General and the chairman of the Federal Trade Commission conduct a comprehensive review of "substantial acquisitions" of single-family homes by institutional investors. This regulatory scrutiny represents an additional layer of oversight for large-scale property purchases.
Mixed Impact on Housing Market Dynamics
In principle, this executive action could provide relief for prospective homebuyers who have faced significant challenges in a housing market where median home prices have reached record highs in recent years, according to Federal Reserve data.
Limited Market Share of Institutional Investors
However, a recent study from property data and intelligence firm BatchData suggests the order's impact might be more limited than anticipated. Their research indicates that institutional investors—defined as firms owning 1,000 or more properties—accounted for just 2 percent of all investor-owned single-family homes during the third quarter of 2025.
The housing market remains predominantly influenced by smaller-scale participants, with investors owning between one and five properties holding nearly 92 percent of all investor-owned single-family homes. Those with six to ten properties control approximately 4 percent of the market.
Administration's Broader Housing Agenda
This executive order represents the latest component of the administration's broader strategy to improve housing accessibility for American families. By targeting institutional investors who purchase thousands of homes simultaneously—thereby reducing available inventory for individual buyers—the administration hopes to create more opportunities for traditional homeownership.
The coming months will reveal how effectively these new restrictions reshape housing market dynamics and whether they deliver the intended benefits to prospective homebuyers across the nation.
