Trump’s War on Investor-Owned Homes Heats Up

Street signs for Wall Street and Broad Street with American flags in the background

Wall Street investors are on the verge of a congressional ban from snapping up single-family homes, delivering a major win for American families sidelined by corporate cash bids.

Story Highlights

Sens. Josh Hawley (R-MO) and Jeff Merkley (D-OR) introduce the Homes for American Families Act today, amending antitrust law to block funds over $150 million from buying single-family homes.
President Trump ignited the push with his January executive order and February 24 State of the Union call to make it permanent, prioritizing homes for people over corporations.
Investors own 3.8% of rentals nationally, but up to 28% in Atlanta, fueling affordability woes amid a 4 million home shortage.
Bipartisan momentum counters Wall Street’s post-2008 expansion, restoring the American Dream for frustrated families.

Hawley-Merkley Bill Targets Corporate Homebuyers

Senators Josh Hawley and Jeff Merkley scheduled their bipartisan Homes for American Families Act for introduction on February 26, 2026. The legislation amends the Sherman Antitrust Act of 1890 to prohibit investment funds with over $150 million in assets from purchasing single-family homes, condos, or townhouses, excluding homebuilders. The Justice Department’s antitrust division would enforce the outright purchase ban. This marks the first legislative proposal after Trump’s State of the Union address urging permanence for his executive actions.

Hawley declared the bill bans Wall Street from buying single-family homes once and for all. Merkley aims to crack down on billionaire corporations gobbling up homes. Their effort responds to families losing bids to cash-flush investors, as Trump highlighted with Raysall Wiggins’ story of 20 failed attempts.

Trump’s Executive Order Sets the Stage

President Trump signed an executive order in January 2026 directing federal agencies including HUD, Treasury, DOJ, and FTC to avoid approving, guaranteeing, or facilitating single-family home sales to large institutional investors. Agencies must promote first-look policies for individuals and review antitrust practices. Trump reiterated this in his February 24 State of the Union, calling on Congress to codify the measures. The order also allocates $200 billion in Fannie Mae and Freddie Mac mortgage securities to lower borrowing costs for Americans.

The administration’s memo proposes limiting investor expansion beyond 100 homes, fulfilling Trump’s campaign promise against corporate dominance in housing. This non-ban approach focuses on federal facilitation limits and antitrust threats, contrasting the Hawley-Merkley outright prohibition.

Housing Crisis Fueled by Investor Expansion

Institutional investors surged into single-family rentals after the 2008 financial crisis, filling gaps from collapsed home construction. They now hold 3.8% of single-family rentals nationwide, rising to 28% in Atlanta and 20% in Charlotte. Federal Reserve data indicates homebuyers require 43% above median income for typical homes, with 83% of Americans saying buying is harder than in past generations. Goldman Sachs estimates a 4 million home shortage as the core driver.

While investors recently act as net sellers, their local dominance in Sun Belt markets blocks families from ownership. Bipartisan supply-boost bills advanced in late 2025, but this targets investor purchases directly to ease bidding wars and restore homeownership dreams.

Impacts and Expert Views on the Proposal

Families in investor-heavy areas gain a bidding edge short-term, prioritizing owner-occupants over corporations. Long-term, rental supply may drop, affecting mortgage-ineligible renters and potentially worsening shortages if investors exit. Smaller investors face $150 million or 100-home thresholds. A 2022 University of Michigan study notes investors boost rental diversity despite price hikes, per Reason.com analysis labeling the push a moral panic.

Hawley introduces bill to block big investors from buying single family homeshttps://t.co/fjaDU2djWb

— Josh Hawley (@HawleyMO) February 26, 2026

Urban Institute data confirms investors’ minor national role but local significance. Proponents like Hawley, Merkley, and Trump frame it as family-first protection. Critics argue it harms renters and ignores supply fixes. GOP reception mixes support from figures like Sen. Bernie Moreno with broader divisions. DOJ and FTC hold enforcement keys as agency rules define large investors.