"President Donald Trump on Wednesday brought the issue front-and-center when he pledged in a social media post to stop institutional investors from buying more homes. Some major owners of single-family rental homes were blindsided by the news, according to people with knowledge of the matter. Traders immediately dumped shares thought to be exposed. Blackstone's stock fell as much as 9.3% and Invitation Homes Inc., the biggest owner of rental homes in the US, as much as 10%."
"Trump's edict was light on details and the shares pared those losses in later trading but the message was sent. He clearly has levers he can pull to attempt to do what he's saying, which can make life pretty miserable for these companies, said Jeffrey Langbaum, a senior real estate analyst with Bloomberg Intelligence. When you come out on the side of helping the individual person more easily afford a home and all you have to do is blame the big institutions, that sells."
"Trump said he will immediately take action to ban large institutional investors from buying more single-family homes, and that he'll ask Congress to codify it. Analysts at RBC Capital Markets said the plan is bad news for Invitation Homes and American Homes 4 Rent, two publicly-traded landlords focused on rental houses. But the companies are long past the time of significant growth in home count, and we don't view growing the footprint as core to the business at this point, they added."
President Donald Trump pledged via social media to stop institutional investors from buying more single-family homes and said he will ask Congress to codify the ban. The announcement surprised some major owners of rental homes and prompted traders to sell shares believed to be exposed; Blackstone and Invitation Homes shares initially fell as much as 9.3% and 10%, respectively. The statement lacked detailed policy specifics, and stocks later pared losses. Analysts said the move could make life difficult for large landlords but noted many public rental firms have largely completed growth in home counts and are not pursuing aggressive expansion.
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