Former President Donald Trump unveiled a legislative proposal targeting corporate-owned rental properties, aiming to restrict entities owning more than 100 units from operating in the residential market. The plan, part of broader housing policy ambitions, could reshape U.S. real estate dynamics.
- Ban targets corporations owning 100+ rental units
- Affects ~650,000 residential units nationwide
- Corporate owners include Blackstone, Invitation Homes, Greystar
- Estimated $120B in single-family rental acquisitions since 2015
- Penalties include up to $5M fines and loss of REIT tax benefits
- Immediate market impact: BX down 4.2%, INVH down 3.7%
Donald Trump has introduced a federal bill that would prohibit corporations owning 100 or more residential rental units from acquiring new properties or expanding existing portfolios. The legislation mandates the divestiture of holdings exceeding this threshold within three years, affecting an estimated 650,000 units across major urban centers including New York, Los Angeles, and Chicago. The proposal comes amid rising scrutiny over institutional ownership in housing markets. According to recent federal data, approximately 2.8 million rental units—about 13% of the national stock—are owned by large corporate entities such as Blackstone Group, Invitation Homes, and Greystar Real Estate. These companies have collectively acquired over $120 billion in single-family rentals since 2015, driving up prices and reducing home availability for individual buyers. If enacted, the law would impose strict penalties for non-compliance, including fines up to $5 million per violation and potential loss of IRS tax benefits tied to real estate investment trusts (REITs). The measure also introduces a new federal oversight body tasked with monitoring compliance and reporting quarterly to Congress. Market reactions were swift: shares of Blackstone (BX) dropped 4.2% in early trading, while Invitation Homes (INVH) saw a 3.7% decline. Real estate analysts suggest the bill could shift capital flows toward smaller landlords and local investors, potentially increasing housing supply in high-demand regions but raising concerns about liquidity in commercial real estate markets.