Trump Urges Congress To Pass Controversial Ban on Institutional Homeowners To ‘Save the American Dream’

President Donald Trump is pushing lawmakers to pass his ban on institutional investors owning single-family homes, a sticking point in the stalled housing bill before Congress.

In a post on Truth Social, Trump called for the House to pass the Senate's version of the 21st Century Road to Housing Act, a wide-ranging housing reform package that has been stalled in Congress for several months as members work through disagreements on the bill's provisions.

"As I said at my State of the Union Address on February 25th, the American Dream of Homeownership is under attack," Trump posted. He reiterated a story he told in the February speech about Houston mother-of-two Raysall Wiggins, who was outbid by investors numerous times in her quest for a home.

In a recent exclusive interview with Realtor.com®, Wiggins shared her frustrations about the role of investors in the market, saying she had to go through "hell and high water." Voters broadly share that sentiment, although large investors account for just a tiny share of the overall single-family market.

"I am asking Congress to pass that Bill, the 21st Century Road to Housing Act, which would ensure that homes are for people, not corporations," Trump said on Monday night.

Trump's comments will put pressure on House Republicans. Many have publicly worried about a provision in the bill forcing build-to-rent developers to sell their homes within seven years, which they say will stifle investment in new developments. And some House members say the Senate's bill has more funding mandates they don't support.

In response, Senators from both parties who back the bill, including Sen. Tim Scott (R-South Carolina) and Sen. Raphael Warnock (D-Georgia), encouraged the lower chamber to act, even as soon as this week.

“Private equity’s greed is squeezing first-time homebuyers out of the market and pushing the American Dream further out of reach," Warnock said. "I welcome anyone who wants to join my fight to finally ban private equity from mass-purchasing single-family homes."

Shifting appetites

The House passed a simpler version of the bill earlier this year, and no mention of the investor ban. The Senate followed with its own version of the bill which has many more provisions, including the ban. The two chambers must reconcile their bills before Trump can sign it.

Several Trump-aligned Republicans said the constraints aim to keep major investors from building permanent rental communities that crowd out would-be homebuyers. But lawmakers haven't agreed on how to define a large institutional investor.

Realtor.com® analysis shows the largest investors own a very small share of the housing market, concentrated in a few cities. Meanwhile, mom-and-pop small investors collectively buy far more real estate, even if each owner only has a few houses.

Builders and housing industry have pushed back. Several groups say these investors build housing inventory and that their market niche is people who might be coming close to owning a home. They're especially worried about a provision that requires build-to-rent developers to sell the homes in seven years, which could stifle the entire market.

BTR companies say the scrutiny stalled finance for their projects. Housing experts and Congressional Republicans also worry such a ban stifles homebuilding amid a housing shortage that is fundamentally a supply problem.

Last month, 76 members of the House's Build America and Real Estate caucuses publicly called for revision or removal of the ban.

But members of Congress have also increasingly agitating for a conference to resolve the Senate and House versions of the bill. Its many other provisions cut regulations and aim to make it easier to build homes nationwide.