US President Donald Trump has declared his administration will act to prohibit large institutional investors from purchasing single-family homes, a move aimed at addressing the nation's severe housing affordability crisis.
A Bid to Restore the American Dream
In a post on his Truth Social platform, the President framed the policy as a crucial step to make homeownership attainable again for American families. He lamented that the dream of owning a home, once the pinnacle of American life, is now increasingly out of reach, particularly for younger citizens.
"People live in homes, not corporations," Trump stated, directly criticising the role of major investment entities in the residential property market. He placed the blame for record-high inflation and unaffordable prices squarely on the policies of his predecessor, Joe Biden.
The Stark Reality of US House Prices
The announcement comes against a backdrop of persistently high living costs since Trump returned to office a year ago. Housing affordability was a central pillar of his 2024 election campaign, where he pledged to rapidly reduce the cost of living for millions.
According to data from the US Census Bureau, the median sale price for a home stood at $410,800 last year. This follows a period during the pandemic when property values soared to unprecedented levels before experiencing a slight correction.
Next Steps and International Spotlight
President Trump confirmed he will ask the US Congress to formally codify the ban into law, ensuring its longevity. He also indicated that further housing and affordability proposals will be unveiled during a scheduled speech at the World Economic Forum in Davos, Switzerland.
The President is expected to attend the annual talkfest in the Swiss Alps this January, where world leaders, executives, and lobbyists convene. This international platform will likely be used to amplify his domestic policy agenda on the global stage.
While the immediate executive action aims to curb institutional buying, the long-term impact on the overheated US property market and whether it will significantly lower prices for first-time buyers remains to be seen. The move signals a continued focus on economic populism as a defining theme of the administration.
