Blackstone Stock Drops on Trump’s Proposed Ban on Institutional Home Buying

President Trump's unexpected announcement to ban institutional investors from purchasing single-family homes sent shockwaves through real estate markets. Blackstone shares fell 5.6%, with single-family rental specialists Invitation Homes and American Homes 4 Rent dropping 6% and 4.3% respectively. The iShares U.S. Home Construction ETF lost 2.4% in the broader sector selloff.

Institutional buyers accounted for just 6.8% of Q3 2025 home sales, down significantly from their 2021 peak. Blackstone quickly clarified that single-family homes represent a negligible portion of its portfolio—merely 2% of real estate assets and 0.5% of total AUM. Some analysts view the market reaction as overblown, suggesting potential buying opportunities in the sector.

The proposed policy shift reflects growing political scrutiny of corporate homeownership. "People live in homes, not corporations," TRUMP declared on Truth Social, framing the initiative as protection for middle-class buyers. Congressional action would be required to implement the ban, leaving uncertainty about the proposal's ultimate impact on housing markets.