Plan likely part of the president's home affordability focus
President Donald Trump promised in the final days of 2025 that he would begin tackling housing affordability challenges once the new year rolled around.
It appears he has made his first statement in that regard today on social media. On his Truth Social account, the president promised to ban the purchase of single-family homes by what he called “large institutional investors,” while also blaming Democrats and former President Joe Biden.
He said in the post that he planned to announce more details at a speech in Davos in two weeks.
“For a very long time, buying and owning a home was considered the pinnacle of the American Dream,” Trump said on Truth Social. “It was the reward for working hard, and doing the right thing, but now, because of the Record High Inflation caused by Joe Biden and the Democrats in Congress, that American Dream is increasingly out of reach for far too many people, especially younger Americans.
“It is for that reason, and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations. I will discuss this topic, including further Housing and Affordability proposals, and more, at my speech in Davos in two weeks.”
It is unclear whether he could do this with an executive order or whether it would require Congressional approval. It is also unclear if there would be legal challenges to such an order.
Calling for lower rates
In addition to this single-family home purchase ban, the White House has been calling for lower mortgage rates to help with affordability.
Even after the Federal Reserve cut rates at its last three meetings of 2025, Trump has blasted chair Jerome Powell while continuing the search for his replacement.
Trump said the latest cut was “rather small” and “could have been doubled, at least doubled.” He added, “I’m looking for somebody that will be honest with interest rates. Our rate should be much lower.”
Housing affordability will likely be a central talking point heading into the 2026 midterm elections.
Perri Garner, CMO of C2 Financial, said affordability is a growing concern for the “sandwich generation,” those caring for both elderly parents and young children.
“There's a lot of pressure between these generations, a group that we refer to as the sandwich generation,” Garner told Mortgage Professional America. “They're in a position where they have been working, but now they've got to take care of their aging parents. They've also got little kids that they're taking care of, and there's a lot more responsibility on the home front.
“I think there are obviously financial opportunities to help them through loan products. It’s an interesting conundrum that people are in right now where they're really trying to navigate these financial complexities of a world that is far more expensive than anything that they've anticipated.”
Help on the way?
In addition to the president’s potential actions, Congress is working on parallel housing bills that could help solve some of the affordability issues currently facing buyers.
The Housing for the 21st Century Act has moved out of committee in the House with overwhelming support. It is similar to the Senate-passed ROAD to Housing Act.
Kimber White, president of the National Association of Mortgage Brokers (NAMB), told Mortgage Professional America that he was encouraged by the movement of the legislation.
“It's a good first step,” White said. “It addresses our housing supply challenges. Like I said to everyone, you can bring rates down and get better terms. But if you're not addressing the supply, you're not doing anything, because all you are going to do is artificially drive housing prices up.”
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He said the hope is that the bill, if passed, will incentivize both increased housing supply and affordable housing.
“We definitely need housing, but we need incentives for builders,” White said. “We need alternative programs. I think this starts addressing them. Whether it's the modular homes, whether it's the prefab homes, whether it's the container homes, it gives them incentives and streamlines some of the reviewing process that happens on the federal level.”
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