A proposed ban on institutional investors like Blackstone from purchasing single-family homes in the U.S. is unlikely to significantly impact housing affordability, according to experts who cite the minimal market share these entities currently hold. The move, while politically salient, misses the broader structural drivers of home prices.
- Institutional investors accounted for 2.3% of single-family home sales in 2024
- Blackstone owns approximately 135,000 homes, representing 1.1% of the U.S. single-family housing stock
- Total institutional home purchases in 2024: 128,000 out of 6.4 million total sales
- A ban would likely reduce national home prices by less than 0.5%
- Primary drivers of housing costs—supply constraints and construction costs—remain unaffected
- Policy impact is expected to be symbolic rather than substantive
A proposed policy by former President Donald Trump targeting institutional investors such as Blackstone Group from acquiring single-family homes in the U.S. is gaining traction in political discourse, but housing economists argue it would have negligible effect on national home prices. Despite the attention, institutional buyers accounted for just 2.3% of all single-family home sales in 2024, according to data from the National Association of Realtors. This share has remained stable over the past five years, indicating limited growth in their market influence. The total number of homes purchased by such entities in 2024 was approximately 128,000 out of 6.4 million total sales. This means institutional investors own roughly 1.1% of the existing U.S. single-family housing stock. In contrast, the primary drivers of price increases—such as constrained supply due to zoning restrictions, rising construction costs, and sustained demand from first-time buyers—remain unaddressed by the proposed ban. Furthermore, analysts note that Blackstone’s portfolio in residential real estate, while large in scale, represents only a fraction of the national housing market. The company owns approximately 135,000 homes, a number that is dwarfed by the 128 million total single-family homes in the U.S. Even if all institutional acquisitions were halted, the impact on median home prices—currently around $425,000—would likely be imperceptible, with estimates suggesting a potential reduction of less than 0.5% in national average prices. The policy’s real-world impact, experts argue, would be more symbolic than functional. It may shift political narratives around housing affordability but does not confront deeper issues like low inventory, high mortgage rates, or labor shortages in construction. Homeowners, renters, and first-time buyers are unlikely to see meaningful relief from such a measure, especially given that the majority of homes remain in the hands of individual owners.