WASHINGTON — President Donald Trump has proposed a plan to ban large investment companies from buying more single-family homes. The proposal targets "Wall Street landlords" and private equity firms that buy and manage large numbers of residential properties.

The plan has created uncertainty for "family offices," which are private companies that manage the money and investments of a single wealthy family. While the proposal aims at major financial firms, these family-run groups might still be labeled as "large investors" depending on how the government writes the final rules for the ban.

Real Estate Investments

Real estate is a major part of the investments held by these family-run firms. According to a report from Campden Wealth and RBC Wealth Management, 75% of family offices in North America invest in real estate. On average, these firms set aside about 18% of their total wealth for property.

Residential properties make up just under one-third of all real estate owned by the average family office. While many of these firms focus on apartment buildings and business properties, some own a large number of single-family homes in suburban and rural areas of the Southern United States.

Defining Large Investors

Whether the ban affects these family firms depends on exactly how the government defines a "large investor." Recently, government regulators have focused on how many homes a group owns rather than the total amount of money it manages.

Recent government reports and proposed laws have used different standards to identify these groups:

  • In 2024, the Government Accountability Office (GAO) defined "institutional investors" as large professional groups that own more than 1,000 small houses. This category includes houses and small buildings with up to four separate apartments.
  • In March, the Stop Predatory Investing Act suggested labeling anyone who owns 50 or more rental houses as "disqualified taxpayers." This label would take away tax breaks, making it much more expensive to buy more property.

If the new policy uses a lower limit, it could stop many family-run firms from buying additional homes. The government has not yet set a specific ownership limit for the new proposal.