President Trump’s new initiative aims to restrict large investment companies from purchasing single-family homes to increase affordability. Experts debate the impact, with 2024 GAO findings unclear on the effect of institutional investors. Realtor.com notes most investor-owned homes are by small investors, not institutional buyers. Local building restrictions also contribute to the housing shortage, according to research from Wharton and Harvard professors.

Cotality reported a rise in investor activity from 29% to 30% in 2025, with the majority of investor-owned homes held by small investors. The impact of Wall Street investors on the housing market remains a topic of debate, with varying views on their influence. Higher home prices and local building restrictions also play a role in the housing shortage.

Trump’s proposal to limit institutional investing may reduce home prices but not significantly impact overall affordability, according to experts. The housing shortage requires multiple solutions beyond restricting institutional investors. Taking personal steps like saving for a down payment, reducing debt, and exploring loan options can help navigate the current housing market challenges.

Read more at Yahoo Finance.: Trump wants to ban Wall Street investments in single-family homes. Would this make housing more affordable?