TLDR
- Blackstone stock fell 5.6% Wednesday after Trump announced plans to ban institutional investors from buying single-family homes
- Trump will call on Congress to pass legislation preventing large investors from purchasing residential properties
- Invitation Homes dropped 6% and American Homes 4 Rent fell 4.3% following the announcement
- Blackstone says single-family homes represent only 2% of its real estate assets and 0.5% of total firm
- KBW analyst suggests stock declines may be overdone and could present buying opportunity
Blackstone stock dropped 5.6% Wednesday after President Trump announced plans to ban institutional investors from purchasing single-family homes. Trump posted on Truth Social that he will call on Congress to codify the ban through legislation.
“People live in homes, not corporations,” Trump wrote. He said he would discuss additional housing affordability proposals at the Davos conference in late January.
The announcement triggered widespread declines in real estate stocks. Invitation Homes fell 6% while American Homes 4 Rent dropped 4.3%. Opendoor plunged 11.7%. The iShares U.S. Home Construction ETF lost 2.4%.
Institutional investors currently account for 6.8% of all home sales in Q3 2025. That figure peaked at 11.3% in late 2021 according to Attom. The firm defines institutional investors as non-lending entities purchasing at least 10 properties per year.
Blackstone’s Single-Family Home Portfolio
Blackstone manages over $1 trillion in assets and operates one of America’s largest rental housing portfolios. The firm owns hundreds of thousands of single-family homes and apartments across the country.
A Blackstone spokesperson said single-family homes represent 2% of the company’s real estate assets under management. That accounts for just 0.5% of the firm’s overall business. Blackstone has been a net seller of homes over the past decade with holdings down more than 20%.
The company previously stated it owns less than 1% of available housing in each market where it operates. Critics argue Blackstone reduces housing availability and pushes prices higher in already tight markets.
Senator Elizabeth Warren expressed support for Trump’s proposal. The Massachusetts Democrat said she has advocated for years to limit Wall Street home purchases. Warren urged Trump to back the Senate’s ROAD to Housing Act passed in October.
Stock Decline May Be Overdone
KBW analyst Jade Rahmani called the market reaction excessive. He wrote that the decline could present a buying opportunity for investors.
Rahmani noted single-family rental REITs can shift their capital allocation strategies. Companies like Invitation Homes and American Homes 4 Rent can pivot toward direct development. They can also liquidate portions of existing portfolios to capitalize on home price appreciation.
Home prices have surged over 50% nationally since March 2020 according to S&P Case-Shiller indices. The announcement comes during the third straight year of three-decade low home sales.
The National Rental Home Council said professional providers represent a small segment of the housing market. A spokesperson said the industry supports renters while maintaining pathways to homeownership. The group plans to engage with the White House on the proposed policy.
Trump said he would provide more details on housing and affordability proposals at Davos in late January.
