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Trump’s Call to Ban Some Institutional Investors From Buying Single-Family Homes

This week’s blog post comes to us from our own Miles Barkley!

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On Wednesday, January 7, 2026, President Donald Trump sent out a message calling for a ban on “large institutional investors” buying single-family homes. For this to have any legal standing, Congress would need to act and codify it. We will have to wait and see whether any of this comes to fruition, but it certainly has people within the industry talking. Of course, there are many questions that need to be answered such as: What counts as a single-family home? Does it include building to rent? Who counts as a “large institutional investor?” And the most pertinent of all: How does this impact Auben?

To start with, the most glaring question is: what qualifies a company as a “large institutional investor?” There are many definitions that one can cite, such as the definitions provided by the American Enterprise Institute’s Housing Center and Cotality, a data analytics site. Cotality defines investors in four groups with the largest being Mega, or having 1,000 or more units owned and large with 100-999 units. The American Enterprise Institute’s Housing Center calls a large investor one that owns at least 100 properties. Auben would fall into the “large” investor category by each of these definitions. In the lawmaking process, there is opportunity to further differentiate who qualifies.

The main follow-up question that anyone would naturally have is: will this have any impact on the housing market? The short answer is we will have to wait and see. Of course, many are skeptical this will achieve the desired outcome. This Globe St article cites the 24 largest owners as holding roughly 520,000 homes – less than 1% of US single family dwellings¹. Blackstone has said they are a net seller of homes over the past decade. 

Institutional investors are an easy target to pin the blame on as people continue to see home prices continue to increase. To add insult to injury, that is paired with higher mortgage rates. Viewing the issue from this lens, would it seemingly do much to ban institutional investors? They have more access to capital and can certainly deploy it easier, but banning them will not solve one of the main issues for individual buyers: getting them the access to capital they need at an affordable rate. 

Inventory is also part of the conversation with housing prices increasing. Homes on market have not kept up with the number of homebuyers. As more products enter the market then prices should adjust as they will have more housing than demand, creating a softening of prices. There are certainly more direct approaches that local authorities can take that could have a lasting impact to create opportunities for families and individuals looking to buy homes. These could be adjusting the permitting process, allowing higher density and building smaller homes. 

Whether Congress acts will determine if we see anything stem from this idea. In the meantime, Auben has done a good job of positioning itself as a community-involved company that has scaled operations responsibly and remains a strong investment vehicle. 

¹ Trump’s Call to Bar Institutional Homebuyers Faces Legal, Market Uncertainty

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