President Trump Announces Major Housing Policy Shifts, with Broader Executive Order Expected

In social media posts this week, President Trump announced major policy shifts aimed at improving housing affordability. In the first post on Jan. 7, the president stated that he is “immediately taking steps to ban large institutional investors from buying more single-family homes.” The following day, the president called on Fannie Mae and Freddie Mac (the Enterprises) to purchase $200 billion in mortgage-backed securities (MBS). These policies are part of a broader effort by the administration to address growing concerns around housing affordability. Central to this effort is the anticipated release of a new executive order (EO) in the coming days or weeks. The White House is reportedly considering including in this effort a policy that would allow people to draw from retirement and college savings accounts to fund down payments for homes, along with other “further Housing and Affordability proposals,” as the president said in his Jan. 7 post.

Ban on Institutional Investor Home Purchases

In a Truth Social post on Jan. 7, President Trump said he will be “taking steps to ban large institutional investors from buying more single-family homes.” While the president did not specify the authorities that he would use to implement the ban, he indicated that further details could be included in his speech to the World Economic Forum in Davos, Switzerland, later in January. The president also called on Congress to codify his proposed ban, and several Republican members made supportive statements on social media, including Sen. Bernie Moreno (R-OH), Sen. Josh Hawley (R-MO) and Rep. Byron Donalds (R-FL). In addition, Senate Banking Committee Ranking Member Elizabeth Warren (D-MA) agreed with President Trump that legislation is needed to prevent large institutional investors from purchasing single-family homes.

In recent years, Democratic lawmakers have put forward legislation consistent with this idea. During the 118th Congress, Sen. Jacky Rosen (D-NV) proposed the HOME Act (S. 3561/118), which would prevent landlords from charging excessive rents during an “affordable housing crisis” and identify any institutional investors who are purchasing an “excessive amount of housing.” Additionally, former Sen. Sherrod Brown (D-OH) introduced the Stop Predatory Investing Act (S. 2224/118), which would eliminate tax depreciation for investors who purchase 50 or more new single-family homes. This bill was reintroduced (S.969) by Sen. Raphael Warnock (D-GA) in March 2025, and it currently has 12 cosponsors, all of whom are Democrats. Sen. Jeff Merkley (D-OR) and Rep. Adam Smith (D-WA) proposed the HOPE for Homeownership Act (H.R. 1745), which would impose additional taxes on institutional investors purchasing single-family homes. While none of this legislation received bipartisan support when it was first introduced, with President Trump having weighed in, some proposals could now receive more vocal support from congressional Republicans.

Purchase of $200 Billion of MBS

On Jan. 8, President Trump made another housing-related announcement on Truth Social, directing Fannie Mae and Freddie Mac to purchase $200 billion in MBS, a move the president said will drive down interest rates and mortgage payments for homeowners. Immediately following the president’s post, Federal Housing Finance Agency (FHFA) Director Bill Pulte affirmed that Fannie Mae and Freddie Mac will make the purchases. Collectively, Fannie and Freddie are permitted to hold a combined $450 billion of MBS; however, they currently hold $247 billion. Accordingly, the two government-sponsored enterprises are well within their threshold limitations to make this $200 billion purchase, which would nearly double their current holdings of MBS while remaining below the limit.

Next Steps

President Trump justified his announcements by pointing to record-high inflation and growing challenges for first-time homebuyers, as home prices have increased 75% over the past decade and the average age of first-time homebuyers has risen from 33 in 2020 to 40. The executive order addressing affordability, particularly housing affordability, is widely expected to be released before the president gives the State of the Union address on Feb. 24. Among the policies reportedly under consideration for inclusion in the EO are provisions that would allow people to draw from retirement and college savings accounts to fund down payments for homes, as well as the president’s proposed ban of institutional investors from purchasing single-family homes.

Last year, both the House Financial Services Committee and the Senate Banking Committee advanced housing-related legislative packages—the Housing for the 21st Century Act (H.R. 6644) and the ROAD to Housing Act (S. 2651). Neither package currently contains any provisions limiting the purchase of homes by institutional investors. However, the president’s announcements this week increases the likelihood that some of his proposed policies, including the institutional investor home purchase ban, could be considered for potential inclusion in any final compromise legislative package that moves through Congress.

Brownstein is closely monitoring developments related to housing policy and can assist clients in assessing policy risk, engaging with relevant stakeholders and navigating potential legislative or regulatory changes as this proposal evolves.

THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING AFFORDABILITY-FOCUSED POLICY ANNOUNCEMENTS BY THE TRUMP ADMINISTRATION. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTIONS.