Core Insights - The housing market is facing a significant supply issue, with Federal Reserve Chair Jerome Powell highlighting the ongoing shortage of housing and the challenges in zoning land in desirable areas [1] - Institutional investors have played a notable role in the housing market, owning 3.4% of U.S. single-family homes, with larger players holding a smaller percentage [2] - The surge in institutional buyers from 2006 to 2014 contributed to a 58% increase in real house price growth and a 75% decline in homeownership rates [1] Market Reactions - The announcement regarding institutional investors' activities led to a decline in shares of major firms, including Blackstone, which fell by 5.6%, and single-family rental REITs like American Homes 4 Rent and Invitation Homes, which dropped by 4.3% and 6.0% respectively [3] Policy Implications - Former President Trump has proposed banning large institutional investors from purchasing single-family homes, citing the impact on affordability and the American Dream for younger Americans [4] - A Zillow report estimates a shortage of 4.7 million homes in the U.S., exacerbating the housing affordability crisis [5] Investment Opportunities - Despite challenges, real estate remains an attractive long-term investment for both institutional and ordinary investors, providing passive income and a hedge against inflation [6] - New crowdfunding platforms allow everyday Americans to invest in real estate with minimal capital, enabling access to income-generating properties without the burdens of traditional ownership [7][9] - Platforms like Homeshares and Lightstone DIRECT offer accredited investors opportunities to invest in diversified real estate portfolios with varying minimum investments [20][15]

By Michael S. Derby Jan 9 (Reuters) - Two Federal Reserve officials on Friday expressed some skepticism that a Trump administration plan to lower housing costs by buying billions in mortgage-backed bonds will do much to lift the troubled sector. The policymakers - Atlanta Fed President Raphael Bostic and Richmond ​Fed President Thomas Barkin - instead argued that while financing costs are a real issue, housing affordability is even more a function of the supply ‌of homes available for purchase. "I do t ...

Industry watchers on both sides of the aisle say President Donald Trump's recently announced goal of banning "large institutional investors" from buying single-family homes won't address the root cause of high home prices: a shortage of homes. Major investors, including hedge funds and private equity firms, own hundreds of thousands of single-family homes around the US, which has raised concerns that Wall Street-backed groups are outcompeting individual homebuyers, especially first-time buyers, and driving ...

President Trump’s latest housing affordability bet calls for mortgage giants Fannie Mae and Freddie Mac to buy $200 billion of mortgage bonds, a move that aims to help push mortgage rates below 6%. “I am instructing my Representatives to BUY $200 BILLION DOLLARS IN MORTGAGE BONDS. This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable,” Trump posted on Truth Social on Thursday. Read more: When will mortgage rates go down? The trend into 2026. The ...

Opendoor stock price was highly volatile this week as Donald Trump started to focus on the affordability issue, especially on the housing market. OPEN initially dropped after his proposal to ban insti... ...

Photographer: Zak Bennett/Bloomberg US President Donald Trump is directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds, a move he cast as his latest effort to bring down housing costs ahead of the November midterm election. Trump announced the move on Thursday in a social media post, saying “This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable.” Most Read from Bloomberg He added that his decision not to sell Fannie Mae ...

President Donald Trump speaks during the House Republican Party member retreat at the Kennedy Center in Washington, Jan. 6, 2026.President Donald Trump's renewed focus on housing affordability has found a clear villain: institutional investors that own large swaths of single-family homes in fast-growing Sun Belt cities, where would-be homeowners increasingly find themselves bidding against Wall Street.Trump argued in a social media post Wednesday that corporate ownership has helped push housing further out ...

California Gov. Gavin Newsom will call for a crackdown on institutional investors buying up homes in the state during a speech Thursday, following a similar announcement by President Donald Trump.Newsom plans on saying he will work with local legislators to target private equity and hedge fund investors purchasing homes in California, particularly corporate entities buying at scale, the governor’s office said in an email. “The fact is that large investors are purchasing homes faster than families can buy th ...

Defense contractors are under fire, an idea to make housing more affordable, Constellation earnings beat expectations, more news to start your day. ...

Taking his Truth Social handle, Trump wrote, "For a very long time, buying and owning a home was considered the pinnacle of the American Dream." He said that he will be taking immediate steps to implement the proposed ban and would urge Congress to codify it into law, though he did not specify the legal authority or mechanisms that would be used.The move comes as the White House faces mounting political pressure over the rising cost of living ahead of this year’s congressional midterm elections.This move m ...