Blocking Corporate Buyers Won't Fix Housing As 80% Of Investors Are Individuals, Strategist Warns - State Street SPDR Dow Jones REIT ETF (ARCA:RWR)

Core Viewpoint - President Trump's executive order aims to reduce housing costs by preventing Wall Street from purchasing single-family homes, but experts argue it misidentifies the main issue and may lead to market instability [1][5]. Group 1: Market Dynamics - Jina Yoon, Chief Alternative Investment Strategist at LPL Financial, highlights that individual investors, rather than corporations, are primarily responsible for the competition in the housing market, with nearly 80% of single-family home purchases in the first half of 2025 made by "mom-and-pop" investors [2][3]. - Large institutional investors account for only 2-3% of total single-family home ownership, with their presence concentrated in cities like Atlanta, Phoenix, and Charlotte [3]. Group 2: Policy Implications - The executive order does not address the underlying structural issues causing the affordability crisis, such as supply shortages, zoning constraints, and high mortgage costs [5]. - The order's restriction on purchasing existing homes may lead to a shift in institutional capital towards "Build-to-Rent" projects, potentially exacerbating the situation [5][6]. Group 3: Market Volatility - The lack of specific details in the executive order has created uncertainty in the market, leading to potential volatility for publicly traded REITs and real estate investment firms [7]. - A list of REITs and real estate-linked ETFs is provided, showing varying year-to-date and one-year performance metrics, indicating the potential for investment opportunities amid these developments [8][9].