Executive Order Targets Institutional Purchases of Single-Family Homes

On January 20, 2026, President Donald J. Trump issued an executive order (EO) restricting the participation of federal programs in transactions where large institutional investors acquire single-family homes that could otherwise be purchased by families. The EO states that homeownership is a core tenet of the American dream and directs the Administration to promote home sales to individual buyers, restrict federal programs from approving, insuring, guaranteeing, securitizing or otherwise facilitating sales of single-family homes to large institutional investors and review acquisitions by large investors.

EO Overview

The EO directs the Treasury Department and the assistant to the president for economic policy to, within 30 days of the EO’s issuance, develop definitions of “large institutional investor” and “single-family home” to guide the executive branch agencies identified in the EO in its implementation.

Within 60 days of the EO’s issuance, the Department of Agriculture, the Department of Veterans Affairs (VA), the General Services Administration (GSA), the Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) are directed to issue guidance to:

• Prevent federal agencies and government‑sponsored enterprises from approving, insuring, guaranteeing, securitizing, or otherwise facilitating acquisitions of single-family homes by large institutional investors when those homes could otherwise be purchased by individual owner‑occupants.
• Avoid disposing of federal assets in a manner that transfers single-family homes to large institutional investors.
• Promote sales to individual owner‑occupants, including through first-look policies, disclosure requirements and anti-circumvention provisions.

The EO provides for a narrowly tailored exemption for build‑to‑rent (BTR) properties, defined as properties that are planned, permitted, financed and constructed as rental communities.

The EO directs the Treasury Department to review existing rules related to institutional investors acquiring or holding single-family homes, which could, depending on interpretation and subsequent action, extend attention to existing single‑family rental portfolios.

HUD is further directed to require owners and managers of single-family rentals participating in federal housing programs to disclose direct or indirect ownership information to the extent necessary to determine the involvement of large institutional investors.

The EO directs the Department of Justice (DOJ) and the Federal Trade Commission (FTC) to review substantial acquisitions, including series of acquisitions, of single-family homes by large investors for potential anti‑competitive effects and prioritize enforcement against coordinated vacancy and pricing strategies in single‑family rental markets.

Finally, the EO directs the preparation of legislative recommendations to codify policies intended to prevent large institutions from crowding out individuals and families in the pursuit of homeownership.

Practical Implications

The EO does not prohibit private, non‑federally supported acquisitions of single‑family homes. It focuses on limiting federal approvals, insurance, guarantees, securitization and other facilitation that can enable such purchases by large investors. Institutional investors can still buy homes with private financing but may now face disincentives such as reduced access to federal support, increased disclosure requirements, heightened antitrust scrutiny and near‑term regulatory uncertainty.

The Treasury Department’s forthcoming definition of “large institutional investor,” which may include considerations such as ownership thresholds, assets under management and number of homes owned or acquired, will be critical in determining how broadly or narrowly the policies set forth in the EO are implemented. Public comments by Treasury Secretary Scott Bessent indicate that thresholds lower than the often‑cited 1,000‑home benchmark may be considered, potentially sweeping in smaller portfolios.

The EO includes a narrow carve‑out for BTR development that may influence institutional investors to redirect capital to the BTR sector, which benefits from clearer regulatory treatment. A surge in BTR developments could reshape rental housing options and offer new avenues for real estate investment and community development.

Client Considerations

The EO has the potential to materially reshape the regulatory and financing environment for large institutional investors such as private equity firms, real estate investment funds and large‑scale single‑family rental operators. Affected investors may face higher compliance costs, reduced access to federal support programs, heightened antitrust scrutiny and potential strategic shifts toward BTR development, with significant near‑term uncertainty pending the issuance of agency definitions and guidance.

Antitrust and Compliance Readiness

Institutional investors with significant single‑family holdings should consider strengthening internal compliance and antitrust readiness. This includes reviewing pricing algorithms and rent‑setting practices, preparing for potential DOJ and FTC information requests and enforcement actions and anticipating possible follow‑on private litigation.

Ownership and Disclosure Planning

Given anticipated expansion of beneficial‑ownership disclosure obligations for participants in federal housing programs, clients should ensure accurate tracking of institutional control and affiliation as well as implementation of consistent internal reporting systems.

Acquisition Strategy Adjustments

Investors with portfolios concentrated in single‑family homes, or growth strategies dependent on bulk acquisitions, may face increased regulatory scrutiny and should consider adjusting their acquisition strategies accordingly. Particular attention should be paid to reliance on federally backed financing channels, as well as exposure in markets where institutional investors already control a significant share of the single-family rental market (for example, Atlanta, Dallas, Phoenix, Houston, Charlotte and Tampa).

Institutional investors should closely track agency guidance and enforcement trends and be prepared to make strategic adjustments. Our is available to assist in evaluating and updating current contracts and practices in light of new developments under the EO.

What’s Next

• Definitions due in ~30 days of the EO’s issuance (Treasury): These will determine the reach of the EO and clarify its scope.
• Agency guidance due in ~60 days of the EO’s issuance (USDA, HUD, VA, GSA, FHFA): Expected to outline restrictions on federal approvals, insurance, guarantees, securitization, and first‑look/anti‑circumvention measures.
• Antitrust focus (DOJ/FTC): Review of substantial and serial acquisitions; increased scrutiny of coordinated vacancy and pricing strategies.