US President Donald Trump announced new steps aimed at reshaping the housing market, placing restrictions on large institutional investors while pushing for lower borrowing costs. The proposals place Trump and the housing market at the center of a broader effort to ease affordability pressures that have locked many Americans out of homeownership.
Speaking Wednesday at the World Economic Forum in Davos, Switzerland, Trump outlined four policy priorities his administration says are designed to reduce housing costs. Central to the plan is limiting the role of well-funded corporate investors in the single-family housing market, a move Trump says would give individual buyers a fairer chance to compete.
Trump argued that homes should primarily serve people rather than corporations and warned against allowing the country to drift toward widespread renting. At the same time, he said his administration would avoid policies that sharply weaken home values, noting that millions of homeowners have benefited from rising equity.
Trump housing market strategy takes aim at corporate buyers
The administration’s focus on housing comes as the U.S. market continues to struggle. Home sales have remained sluggish since 2022, when mortgage rates climbed from pandemic-era lows.
Higher borrowing costs, rapid price growth over several years, and a long-term shortage of new construction have combined to strain affordability. Sales of existing homes last year stayed near their lowest level in three decades.
Trump again stressed the need to reduce interest rates on mortgages and credit cards. He said lower rates would allow potential buyers to save more easily for down payments and increase their purchasing power.
WINNING — President Trump during his Davos speech said “homes are built for people, not for corporations, and America will not become a nation of renters.”
Referencing his executive order to prevent large institutional investors like Blackrock from buying single family homes pic.twitter.com/wQiSwkOOM9
— The Boston Conservative (@BosConservative) January 22, 2026
As part of that effort, Trump said he directed the federal government to buy $200 billion in mortgage bonds, arguing the move could help push mortgage rates lower. Some economists have questioned whether the action would meaningfully affect rates.
Trump also said he plans to name a new Federal Reserve chair to replace Jerome Powell when Powell’s term ends in May. He expressed confidence that the next chair would manage the role effectively.
Mortgage rates and credit costs remain key challenges
Past experience, however, shows that Fed rate cuts do not always lead to lower mortgage rates. After the Fed cut rates in late 2024, mortgage costs instead climbed above 7 percent as Treasury yields rose. Rates have eased more recently, with Freddie Mac reporting the average 30-year mortgage at 6.06 percent last week.
Beyond mortgages, Trump said he is seeking legislation that would cap credit card interest rates at 10 percent for one year. The proposal follows resistance from the credit card industry after Trump earlier urged voluntary limits. The Federal Reserve Bank of New York places the current average credit card rate near 21 percent.
Late Tuesday, Trump signed an executive order directing federal agencies to review laws governing large institutional purchases of single-family homes.
The order calls for examining possible anti-competitive practices, gives individual buyers priority access to foreclosed homes, and bars federal housing agencies from supporting large investor purchases. Companies that build homes specifically for rent are excluded.
Policy details, definitions and market impact remain unclear
The administration has not yet defined what qualifies as a large institutional investor. While corporate ownership is higher in some metro areas such as Atlanta and Phoenix, most rental homes nationwide are owned by small investors who would not be affected.
Redfin chief economist Daryl Fairweather said the policy is unlikely to have a major impact on the overall housing market.
Trump offered limited detail during the Davos speech. Kevin Hassett, director of the National Economic Council, later said the remarks were meant to preview additional policy announcements. The White House is also considering allowing Americans to use 401(k) retirement savings to help fund home down payments.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
