Blackstone (BX) Stock Falls 5% After Trump Announces Ban on Institutional Home Buyers

TLDR

• Blackstone stock fell 5.6% on Wednesday after Trump’s institutional investor ban announcement
• Trump plans to ban large investors from buying single-family homes through congressional legislation
• Single-family rental stocks Invitation Homes dropped 6% and American Homes 4 Rent declined 4.3%
• Blackstone says single-family homes represent only 2% of its real estate portfolio
• Analyst suggests stock decline may create buying opportunity for investors

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Blackstone stock dropped 5.6% Wednesday following President Trump’s announcement to ban institutional investors from purchasing single-family homes. Trump posted on Truth Social that he will call on Congress to pass legislation preventing large investors from buying residential properties.

Blackstone Inc., BX

The announcement triggered declines across real estate stocks. Invitation Homes fell 6% while American Homes 4 Rent dropped 4.3%. Opendoor plunged 11.7%. The iShares U.S. Home Construction ETF lost 2.4%.

Institutional investors currently represent 6.8% of all home sales in Q3 2025. That figure peaked at 11.3% in late 2021 according to real estate analytics firm Attom. These buyers are defined as non-lending entities purchasing at least 10 properties annually.

Blackstone’s Housing Portfolio

Blackstone manages over $1 trillion in assets including one of the largest rental housing portfolios in America. The firm owns hundreds of thousands of single-family homes and apartments nationwide.

A Blackstone spokesperson said single-family homes account for 2% of the company’s real estate assets. That represents 0.5% of the firm’s total business. Blackstone has been a net seller of homes over the past decade with holdings down more than 20%.

Critics argue Blackstone reduces housing availability in tight markets. The company maintains it owns less than 1% of available housing in each operating market.

Senator Elizabeth Warren backed Trump’s proposal. The Democrat said she has advocated for years to limit Wall Street home purchases. Warren urged Trump to support the Senate’s ROAD to Housing Act passed in October.

Analyst Sees Opportunity

KBW analyst Jade Rahmani called the stock declines excessive. He suggested the market reaction could present a buying opportunity for investors.

Rahmani noted single-family rental REITs can pivot strategies. Companies like Invitation Homes and American Homes 4 Rent can focus on direct development. They can also sell existing properties to capitalize on home price appreciation.

Home prices have climbed over 50% nationally since March 2020 according to S&P Case-Shiller indices. The announcement comes during the third consecutive year of three-decade low home sales.

The National Rental Home Council said professional providers represent a small housing market segment. A spokesperson said the industry supports renters while maintaining pathways to homeownership. The group will engage with the White House on the policy.

Trump stated he would provide more details on housing affordability proposals at Davos in late January.

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