American Homes 4 Rent(US:AMH) Business Insider·2026-01-09 10:54Core Viewpoint - Trump's proposal to ban large institutional investors from purchasing single-family homes has raised concerns and skepticism within the real estate investment industry, with some industry leaders not overly worried about its potential impact [1][2]. Group 1: Industry Reactions - Todd Henderson, head of real estate for the Americas at DWS, believes that Trump's proposal may eventually exclude institutional buyers who focus on newly built homes, which are crucial to the single-family rental (SFR) market [2]. - Shares of major SFR companies, including Invitation Homes and American Homes 4 Rent, fell by approximately 7% and 9% respectively following Trump's announcement [4]. - Blackstone Real Estate Income Trust, which holds about $11 billion in SFR investments, also experienced a decline in share prices, but analysts suggest that the market reaction may be excessive and could present a buying opportunity [5]. Group 2: Market Dynamics - The SFR industry has shifted its business model away from competing with individual homebuyers, focusing instead on acquiring homes directly from builders [3]. - Investors currently own a small percentage of the total single-family homes in the U.S., with those owning 10 or more units holding about 3.4% and larger investors with at least 1,000 units controlling just 0.73% of the inventory [8]. - The SFR industry emphasizes its role in supporting renters and facilitating pathways to homeownership, indicating a commitment to the housing market [9]. Group 3: Legislative Uncertainty - Trump's call for congressional action to formalize the SFR ban introduces complexity and uncertainty, with reports suggesting that proposed legislation may not progress quickly [6][7]. - Henderson anticipates that any new rules would likely exempt builders and buyers of new SFR homes, allowing major investors to continue selling existing portfolios without significant changes to the industry [7].