President Donald Trump has signed a new executive order aimed at stopping large Wall Street firms from competing with ordinary families for starter homes, marking a sharp intervention in the United States (US) housing market.

The order, titled Stopping Wall Street from Competing with Main Street Homebuyers, is framed as a response to the growing role of institutional investors in single-family housing. “Buying and owning a home has long been considered the pinnacle of the American dream,” the order states, warning that this dream is slipping away as “a growing share of single-family homes … have been purchased by large Wall Street investors, crowding out families seeking to buy homes.”

The directive instructs federal agencies to ensure that government housing programmes do not support or subsidise purchases of single-family homes by large institutional investors. It also calls on the Department of Justice and the Federal Trade Commission to review whether major investors are engaging in anti-competitive behaviour when buying up housing stock. The Department of Housing and Urban Development is further told to improve transparency so that corporate ownership of homes linked to federal programmes is clearly identified.

According to the White House, the goal is to tilt the market back toward first-time buyers and young families who cannot compete with firms able to make all-cash offers and close deals quickly. “Large institutional investors should not buy single-family homes that could otherwise be purchased by families,” the order says.

The policy targets a trend that has reshaped parts of the US housing market over the past decade. Large asset managers and investment firms, including players such as BlackRock and other major private equity groups, have expanded their footprint in entry-level housing, particularly in fast-growing cities. By buying up starter homes and converting them into rental portfolios, these firms reduce the supply of homes available for purchase and push more households into renting.

The White House fact sheet accompanying the order argues that this shift has “reduced the supply of homes for owner-occupants and driven up prices”, making it harder for families to build wealth through ownership. “Hardworking young families cannot effectively compete for starter homes with Wall Street firms and their vast resources,” it says.

This pressure is not unique to the US. Across many developed economies, young people are struggling to afford homes as house prices rise faster than wages. In countries such as the US, Britain, Canada, and Australia, more young adults are renting for longer or abandoning homeownership altogether.

When young people cannot buy homes, they delay starting families, struggle to build assets, and face greater financial insecurity. Over time, this places strain on communities, deepens generational inequality, and fuels social frustration.

Critics of the executive order argue that institutional investors still own a relatively small share of the overall housing stock. Supporters counter that these investors tend to be concentrated in specific regions and market segments, where their buying activity can have an outsized impact on prices and availability.

The order also directs the administration to develop legislative proposals that could lock these restrictions into law, signalling that the White House wants a longer-term shift in how housing markets are structured.

Whether the policy succeeds will depend on enforcement and on whether housing supply expands more broadly. But the message from the White House is blunt. As the fact sheet puts it, “People live in homes, not corporations.”