January 22, 2026
On January 20, 2026, President Donald J. Trump signed an executive order outlining a new federal policy aimed at limiting the role of large institutional investors in the acquisition of single-family homes that could otherwise be purchased by individual owner-occupants.
The order frames homeownership as a cornerstone of wealth creation for American families and cites affordability pressures driven by inflation, elevated interest rates, and competition for entry-level homes. It asserts that increased institutional ownership in certain local markets may reduce access for first-time and middle-income buyers.
Key elements of the order include:
Policy Direction: Federal agencies are instructed to prioritize individual owner-occupants over large institutional investors when facilitating, financing, insuring, or disposing of single-family homes, to the maximum extent permitted by law.
Definitions Pending: Within 30 days, the Treasury Department will develop formal definitions of "large institutional investor" and "single-family home," which will guide implementation across agencies.
Federal Sales & Financing Restrictions: Agencies including HUD, USDA, VA, FHFA, and GSA are directed to issue guidance limiting federal support for institutional purchases of qualifying single-family homes and to promote first-look and disclosure policies favoring owner-occupants.
Explicit Build-to-Rent Exception: The order includes narrowly tailored exceptions for build-to-rent communities that are planned, permitted, financed, and constructed specifically as rental housing—recognizing purpose-built rental supply as distinct from acquisition-driven strategies.
Antitrust & Disclosure Measures: The Department of Justice and FTC are instructed to review large-scale and serial acquisitions for potential anti-competitive effects, while HUD may require expanded ownership disclosures from single-family rental operators participating in federal programs.
Path to Legislation: The Administration signals intent to pursue legislation that would codify the policy framework outlined in the order.
Importantly, the executive order does not create new enforceable rights, nor does it immediately change market rules. Its practical impact will depend heavily on forthcoming definitions, agency guidance, enforcement priorities, and potential legislative action.
For housing operators, investors, builders, and policymakers, the order underscores a growing federal focus on differentiating owner-occupied housing, acquisition-driven institutional activity, and purpose-built rental communities—a distinction that will shape regulatory and capital conversations moving forward.
Source: The White House - Presidential Executive Order Library https://www.whitehouse.gov/presidential-actions/2026/01/stopping-wall-street-from-competing-with-main-street-homebuyers/
