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The White House has proposed restricting investors who own more than 100 single-family homes from purchasing additional properties, according to a report by The Wall Street Journal. The proposal, shared with congressional committee leaders, is expected to be introduced as part of a Senate housing bill currently under negotiation. While exemptions have been suggested for investors involved in building or substantially renovating rental homes, the move forms part of a broader effort by President Donald Trump's administration to address housing affordability and limit competition between institutional investors and individual buyers.
The administration of U.S. President Donald Trump has put forward a proposal to restrict certain large-scale investors from acquiring more residential properties. According to a report by The Wall Street Journal, the White House circulated a memo to congressional committee leaders outlining a plan to bar investors who already own more than 100 single-family homes from purchasing additional houses. Advertisement
The report stated that the proposal contains several exemptions. Investors who construct new homes or undertake substantial renovations specifically for rental purposes may not be subject to the restriction. This suggests that the administration is attempting to distinguish between large portfolio accumulation and supply-creating activities in the housing market.
Officials are reportedly seeking to incorporate the investor restriction into a Senate housing bill that is currently under negotiation. The aim is to move the proposal forward through existing legislative channels rather than introduce a separate standalone measure.
The White House had not responded to requests for comment at the time the report was published.
The proposal builds on an executive order signed in January that sought to limit the ability of large institutional investors to compete directly with individual homebuyers. That order was framed as part of a broader effort to make housing more affordable, particularly in markets where bulk purchases by institutional players have been linked to rising prices and reduced inventory for first-time buyers.
In recent years, institutional investment in single-family rental homes has grown significantly across the United States, especially after periods of housing market correction. Critics have argued that concentrated ownership reduces available supply for owner-occupiers and contributes to higher home prices. Supporters of institutional investment, however, maintain that such activity adds professionally managed rental stock to the market.
With congressional elections approaching later this year, the administration has been under pressure to address voter concerns over housing costs. In addition to regulatory steps, it has also pursued financial measures aimed at improving affordability, including purchases of mortgage-backed securities to support liquidity in the housing finance system.
If incorporated into the pending Senate bill, the proposed restriction would represent one of the more direct federal interventions targeting large-scale ownership of single-family homes. Its legislative progress and final scope will depend on negotiations in Congress and the response from industry stakeholders.
Source Reuters
5th Jun, 2025
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