On January 20, 2026, the Trump administration issued an executive order to limit the purchase of single-family homes by Wall Street investors.
Declaring it the administration’s policy that “large institutional investors should not buy single-family homes that could otherwise be purchased by families,” the executive order aims to “preserve the supply of single-family homes for American families and increase the paths to homeownership.” While the executive order does not ban such investors from purchasing homes or require portfolio sales, it directs agencies to issue new guidance, review current regulations and implement requirements aimed at restricting sales of single-family homes to large institutional investors. The executive order also calls for White House staff to prepare legislative recommendations to enact the policy.
Agency and legislative directives
Within 60 days of the executive order’s issuance, the Department of Agriculture, the Department of Housing and Urban Development (HUD), the Department of Veterans Affairs, the General Services Administration and the Federal Housing Finance Agency must issue guidance to:
- Prevent agencies, including government-sponsored enterprises, from approving, insuring, guaranteeing, securitizing or facilitating the acquisition of single-family homes by large institutional investors.
- Prevent agencies from disposing of federal assets in a way that transfers a single-family home to a large institutional investor.
- Promote sales of single-family homes to individuals, including through “anti-circumvention provisions, first-look policies, and disclosure requirements.”
The executive order also calls on the Department of Justice and Federal Trade Commission to review “substantial acquisitions” of single-family homes by large institutional investors for anti-competitiveness and focus antitrust enforcement on coordinated vacancy and pricing strategies. Additionally, to help identify large institutional investor involvement in single-family home rentals, HUD must implement requirements for disclosing ownership of single-family home rentals that are offered through federal housing assistance programs.
In addition, the executive order directs the Department of the Treasury to review and consider revising rules and guidance to align with the administration’s large institutional investor policy. Similarly, the deputy chief of staff for legislative, political and public affairs is directed to prepare recommendations for legislation aimed at codifying this policy.
Key terms left undefined
While the executive order limits its scope to the purchase of “single-family homes” by “large institutional investors,” neither term is defined. The executive order requires the Treasury secretary to define both terms by February 19, 2026. The executive order also explicitly exempts build-to-rent properties that are “planned, permitted, financed, and constructed as rental communities” from certain guidance issued pursuant to the policy.
Although the scope of what is considered a large institutional investor is still in question, the term has generally been used to describe institutional investors that own 1,000 or more homes.[1] Notably, though, Treasury Secretary Scott Bessent recently made public statements suggesting that officials are considering lower thresholds – potentially based on ownership of a dozen or two dozen homes – for purposes of this policy, thus raising the possibility that the executive order could apply to a broader pool of owners.
What’s next?
The executive order comes on the heels of recent comments by President Donald Trump and his administration on social media and other platforms regarding the administration’s agenda to address housing affordability. Earlier this month, the White House published an article highlighting the president’s commitment to “cutting red tape, boosting supply, and delivering lasting affordability so every American can achieve the dream of homeownership.” The article also lists initiatives the administration has undertaken as a result, including directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities to lower borrowing costs.
We will continue to monitor for legislative and agency action taken pursuant to the executive order.
[1] See Rental Housing: Information on Institutional Investment in Single Family Homes, US Government Accountability Office, Report to Congressional Committees (May 2024); see also FTC Request for Public Comment, 90 FR 8133 (January 24, 2025).