In a move that has surprised many, Donald Trump has signed an executive order banning large institutional investors from acquiring single-family homes in the United States. The directive, which he has also called on Congress to pass into law, aims to curb the influence of asset managers and pension funds in the residential real estate market. Trump declared, “Homes are built for people, not for corporations.”
The policy places Trump to the left of Britain’s Labour Party on housing. Prime Minister Keir Starmer and Chancellor Rachel Reeves have actively courted firms such as Blackstone, once the largest owner of single-family rentals in the US. Their strategy relies on institutional investment to deliver 1.5 million homes over the course of parliament, including new towns announced by Housing Secretary Steve Reed.
Industry insiders expect corporate landlords to supply up to a quarter of these new homes through build-to-rent schemes, including single-family rental developments. The UK’s single-family rental market, though small compared to the US, is growing rapidly. According to Knight Frank, single-family rentals now account for 40% of all investment in the build-to-rent sector, a segment that barely existed before 2020.
Trump’s decision appears driven by electoral pressures. With rents and food driving US inflation, he faces a need to deliver on affordability promises ahead of the November midterm elections. However, his real estate donor base benefits from rent inflation, making the ban a risky political gamble.
Analysts predict that Trump’s crackdown could shift institutional investment activity towards the UK, where single-family rentals are already attracting significant capital. The policy contrast highlights a transatlantic divide in approaches to housing affordability and corporate power.
