Blackstone (BX) Stock Falls as Trump Proposes Ban on Institutional Home Buying

TLDR

• President Trump announced plans to ban institutional investors from buying single-family homes and will call on Congress to pass legislation
• Blackstone stock dropped 5.6% after the announcement, with single-family rental companies Invitation Homes and American Homes 4 Rent falling 6% and 4.3%
• Institutional investors represented 6.8% of all home sales in Q3 2025, down from a peak of 11.3% in late 2021
• Blackstone stated single-family homes represent only 2% of its real estate assets and 0.5% of the firm overall
• One analyst suggested the stock drops could be overdone and present a buying opportunity for investors

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Blackstone stock closed down 5.6% on Wednesday after President Trump posted on Truth Social that he plans to ban large institutional investors from purchasing single-family homes. The president said he would call on Congress to pass legislation codifying the ban.

Blackstone Inc., BX

The announcement sent shockwaves through real estate-related stocks. Invitation Homes dropped 6% while American Homes 4 Rent fell 4.3%. The iShares U.S. Home Construction ETF lost 2.4%.

Trump’s post comes as housing affordability remains a top concern for Americans. Home prices have climbed more than 50% nationally since March 2020 according to S&P Case-Shiller indices. The announcement also follows what is expected to be the third consecutive year of three-decade low home sales.

Institutional investors have become a visible presence in the housing market over the past several years. Real estate analytics firm Attom defines institutional investors as non-lending entities that purchased at least 10 properties in a calendar year. These buyers represented 6.8% of all home sales in Q3 2025, down from a peak of 11.3% in late 2021.

Blackstone Responds to Market Reaction

Blackstone manages more than $1 trillion in assets and has built one of the country’s largest rental housing portfolios. The firm owns hundreds of thousands of single-family homes and apartments across multiple markets.

A Blackstone spokesperson told multiple outlets that single-family homes represent about 2% of the company’s real estate assets under management. That amounts to just 0.5% of the firm’s overall business. The spokesperson added that Blackstone has been a net seller of homes over the past decade, with holdings down more than one-fifth.

Critics have accused Blackstone of buying properties in bulk and reducing availability in an already tight housing market. The company has previously stated it owns less than 1% of available housing in each market where it operates.

Senator Elizabeth Warren expressed support for congressional action. The Massachusetts Democrat said she has been advocating for years to limit Wall Street’s home purchases. Warren co-leads the Senate Banking Committee and urged Trump to support the ROAD to Housing Act, which the Senate passed in October.

Market Reaction May Be Overdone

KBW analyst Jade Rahmani suggested the stock drops could be excessive. He wrote that the market reaction in single-family rental REITs and homebuilders “seems excessive and could present a buying opportunity.”

Rahmani noted that companies like Invitation Homes and American Homes 4 Rent could shift their strategies. These firms can pivot toward direct development through their own operations. They could also sell portions of their existing portfolios to capitalize on home price appreciation.

The National Rental Home Council said professional single-family home providers represent a small segment of the overall housing market. A spokesperson said the industry remains focused on supporting renters while also supporting pathways to homeownership. The group said it looks forward to engaging with the White House on the issue.

Trump said he would discuss housing and affordability proposals in more detail at the Davos conference in late January.

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