On January 7, 2026, President Donald Trump announced via Truth Social his intention to ban large institutional investors from purchasing single-family homes. The announcement, framed as a move to address housing affordability issues stemming from "record inflation under the previous Biden administration," sent immediate shockwaves through related financial markets.
The policy proposal had a direct and severe impact on real estate-related stocks. Opendoor Technologies (OPEN) saw its shares plummet by 10% in a single day, closing at $6.12. Other major players, like private equity giant Blackstone (BX), also experienced significant pressure, with its stock retreating from a weekly high of $163 to around $147.
In a notable development, Opendoor's CEO, Kaz Nejatian, publicly supported Trump's proposal. "When families buy homes, they buy a stake in the future of their community," Nejatian stated, adding, "Everything we can do to help people live in homes they own is a good thing." He was quick to distinguish his company's iBuyer model—which involves quickly flipping homes—from long-term institutional ownership, asserting, "We're not institutional investors, our job is to help people buy homes. We don't hold the homes!"
The market reaction reflects deep investor concern over potential regulatory changes. Blackstone, as the largest owner of single-family rentals in the U.S. through acquisitions like Home Partners of America ($6 billion) and Tricon Residential ($3.5 billion), is seen as particularly vulnerable. However, analysts note significant hurdles for the proposal, including potential legal challenges, lobbying efforts, and the need for Congressional approval. Trump stated he would call on Congress to codify the ban and promised to unveil more detailed housing affordability proposals in a speech at the World Economic Forum in Davos in two weeks.
The event highlights the intersection of policy, real estate, and financial markets, with companies now navigating uncertainty while attempting to align their public messaging with the proposed political direction.
