A newly proposed executive action by former President Donald Trump to prohibit corporations from purchasing residential homes has triggered sudden volatility in U.S. real estate and financial sectors. The policy, unveiled on January 7, 2026, targets institutional investors and REITs, citing concerns over housing affordability and market distortion.
- Trump's 'Housing for Americans Act' proposes banning corporate ownership of residential homes with more than 10 employees
- Corporate entities held 1.1 million homes in the U.S. as of 2025, including 420,000 owned by REITs
- Miami-Dade County had 14% of single-family homes in corporate hands as of 2025
- Existing-home sales in high-ownership areas dropped 6.3% in early January 2026
- S&P 500 Real Estate Sector Index fell 4.7% on January 8, 2026
- REITs Realty Income (O) and Invitation Homes (INVH) declined 7.8% and 9.2%, respectively
The proposal, formally titled the 'Housing for Americans Act,' would bar any entity with more than 10 employees from acquiring residential properties for investment purposes. The measure, which includes retroactive provisions for holdings exceeding 50 units, has prompted immediate market reactions. According to preliminary estimates, over 1.1 million homes—nearly 8% of all existing residential properties—were held by corporate entities in 2025, with approximately 420,000 of those owned by REITs such as Realty Income (O) and Digital Realty Trust (DLR). The policy's implications are far-reaching. In major metropolitan areas, including Miami-Dade County, Florida, where corporate ownership accounted for 14% of single-family homes in 2025, property values have already begun to adjust. Data from the National Association of Realtors indicates that existing-home sales in areas with high corporate activity dropped 6.3% in the first week of January 2026, while mortgage applications fell 12.1% week-over-week. Wall Street reacted swiftly, with the S&P 500 Real Estate Sector Index declining 4.7% on January 8, 2026, its largest single-day drop in six months. REITs saw steeper losses: Realty Income fell 7.8%, and Invitation Homes (INVH) dropped 9.2%. Analysts note that the proposal could force a forced divestiture of assets, potentially triggering liquidity issues for major institutional investors. The Federal Reserve has not yet commented, but market participants speculate that the policy could influence future monetary policy decisions related to housing market stability.