U.S. President Donald Trump on Tuesday signed an executive order in Washington, D.C. aimed at restricting federal support for large institutional investors purchasing single-family homes. The order is intended to prioritize individual homebuyers and reduce competition from Wall Street firms in the housing market.

The measure directs multiple federal departments and agencies to issue guidance within specified timeframes to limit assistance that would enable institutional investors to acquire single-family homes. It also instructs agencies not to dispose of federal assets in ways that transfer such homes to large institutional investors.

The executive order requires the Secretary of the Treasury to define key terms such as “large institutional investor” and “single-family home” for implementation purposes. These definitions are to be developed in consultation with other economic policy officials.

The directive further calls on the Justice Department and the Federal Trade Commission to review substantial acquisitions of single-family homes by large investors for potential anti-competitive effects under U.S. law. The review is intended to ensure enforcement of antitrust statutes where appropriate.

The White House order instructs federal agencies including Housing and Urban Development and the Department of Agriculture to promote sales of single-family homes to individual owner-occupants. The guidance may include policies like first-look opportunities and disclosure requirements.

Implementation is subject to applicable law and availability of appropriations, and there has been no announcement of subsequent legislation. The order itself does not directly prohibit purchases by institutional investors but seeks to curb federal facilitation of such transactions.

Sources
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