Republicans Struggle To Chart A Path On Trump’s Wall Street Housing Pledge

President Donald Trump has vowed to stop Wall Street from buying up single-family homes, but congressional Republicans have been slow to act and are largely backing incremental proposals over a full ban.

Despite Trump’s direct call for Republicans to act, there has been little urgency within the party to tackle the issue — even though affordability and pricing are among the top issues heading into the 2026 midterms. (RELATED: Is Trump Blaming The Wrong Culprit For Unaffordable Houses?)

The issue of large institutional investors snatching up single-family homes has drawn bipartisan support from some in Congress. Several high-profile Democrats called for restrictions or an outright ban well before President Donald Trump’s Jan. 7 Truth Social post — highlighting broad cross-party appeal even as legislative momentum remains uncertain.

Democratic Massachusetts Sen. Elizabeth Warren, for example, has been outspoken for years about the issue. She stated her position in a Dec. 2023 post on X.

“Since the Great Recession, institutional investors have bought up hundreds of thousands of single-family homes, hoovering up a significant chunk of the housing supply and hiking rents by double-digit margins. It’s time to loosen Wall Street’s grip on the housing market,” she stated.

Since the Great Recession, institutional investors have bought up hundreds of thousands of single-family homes, hoovering up a significant chunk of the housing supply and hiking rents by double digit margins. It’s time to loosen Wall Street’s grip on the housing market.

— Elizabeth Warren (@SenWarren) December 31, 2023

Trump called Warren on Monday, she said, to discuss plans to lower housing costs and a separate affordability-related proposal to cap interest rates on credit cards.

Following Trump’s housing policy announcement, Democratic California Rep. Ro Khanna also urged the president in a post on X to support his Stop Wall Street Landlords Act, which he plans to reintroduce Friday alongside 10 other Democratic lawmakers.

The bill, first introduced in 2022, aims to strip certain tax benefits and federal mortgage assistance from large investors in single-family homes, impose an excise tax on their sales, and create a tax credit to support the development of owner-occupied housing — steps designed to limit Wall Street’s influence in the single-family housing market.

“Homes should be owned by people, not wealthy corporate landlords who are buying up single-family homes and pushing the dream of homeownership out of reach for too many Americans,” Khanna wrote in a statement to the Daily Caller. “I’m proud to lead this effort to put affordable housing for families first. If President Trump is serious about taking on Wall Street landlords, Congress should pass my bill and he should sign it into law.”

Similarly, Democratic Oregon Sen. Jeff Merkley pointed to his Humans Over Private Equity (HOPE) for Homeownership Act, which was drafted specifically to address large investment funds purchasing single-family homes. Merkley noted that Republicans blocked the measure in 2025 but said he now has “hope” it could advance in light of Trump’s remarks.

The Caller reached out to Independent Vermont Sen. Bernie Sanders, who co-sponsored the HOPE Act with Merkley, and Sen. Warren for comment but did not receive a response prior to publication.

Taken together, the Democratic response raises a broader question: If key Democrats are aligned with Trump on curbing institutional ownership of single-family homes — and have been advancing legislation to that end for years — how much of an obstacle is the GOP’s slim majority?

Support for action has surfaced in the days following Trump’s announcement among some Republicans. Republican Missouri Sen. Josh Hawley publicly endorsed the idea, writing on X, “This is a terrific idea and long overdue. I will gladly introduce this bill in the Senate.” A spokesperson for Hawley confirmed to the Daily Caller he intends to introduce legislation.

Republican North Carolina Rep. Pat Harrigan introduced a bill in January, “The Families First Housing Act of 2026,” that allows Americans greater access to homes without competition from Wall Street. (RELATED: EXCLUSIVE: GOP Rep Introduces Bill To Prioritize American Homeownership Over Wall Street Leeches)

Harrigan’s bill establishes a 180-day “first-look” period, giving families priority to purchase single-family homes owned, foreclosed or managed by the Federal Housing Administration (FHA), Federal Housing Finance Agency, Fannie Mae, Freddie Mac and the Department of Agriculture.

The legislation, however, stops short of a full ban, allowing institutional investors to enter the market after the window expires. Harrigan cautioned that a complete ban may not be realistic, instead pushing Congress to act quickly on more limited measures to protect American families.

“A lot of Republicans are wary of a sweeping, government-mandated ban because we believe in free markets and want to avoid policies that create unintended consequences or collapse under legal challenge,” Harrigan said in a statement to the Caller. “At the same time, it’s clear the current system isn’t working when families are getting routinely outbid by large institutional investors.”

Harrigan argues his bill strikes a balance by giving families priority to buy federally-backed homes without fully banning investors, making it a practical, enforceable solution that addresses housing challenges while respecting the free market.

“The Families First Housing Act is designed as a practical middle ground,” he said. “It doesn’t outlaw investment or distort the housing market, but it does draw a clear line by ensuring families get a fair first opportunity to buy federally backed homes before Wall Street steps in. That approach respects free-market principles while addressing a real problem, and it’s far more likely to be enforceable, sustainable, and capable of being codified.”

In light of the bill proposals, several GOP members and the Republican Study Committee (RSC) were asked why Republicans have been hesitant to codify a full ban on institutional investors.

The Republican Study Committee (RSC) on Tuesday unveiled its framework for a second reconciliation bill aimed at making homeownership attainable for young Americans by addressing key obstacles in today’s housing market, though the plan stops short of instituting Trump’s preferred full ban on institutional investors buying single-family homes.

RSC_Reconciliation 2.0 Framework by ashley

The proposal would reduce or eliminate down payments for credit-worthy first-time buyers through the “Don” Down Payment program, eliminate capital gains taxes on homes sold to first-time buyers to help expand housing supply, and establish tax-advantaged — and in some cases tax-free — Home Savings Accounts to help young Americans begin saving for a home earlier.

RSC Chairman August Pfluger told the Caller that after four years of rising costs under former President Joe Biden, Republicans intend to use reconciliation to make “the American Dream affordable again” and deliver tangible results for American families.

“President Biden spent four years making everything more expensive. President Trump and Republicans will spend the next three making the American Dream affordable again,” said Pfluger. “This blueprint cuts costs where families feel it most — housing, health care, and energy — slashes woke and wasteful spending, and locks in President Trump’s deregulatory agenda through the only process Democrats can’t block: reconciliation. We’re focused on results – lower prices, more freedom, and a stronger future for American families. We have 11 months of guaranteed majorities. We’re not wasting a single day.”

Republican Ohio Sen. Bernie Moreno said in a post on X that he also plans to introduce legislation to codify a ban on institutional investors, though he declined to provide details to the Caller on when the bill would be introduced or what it would include.

Republican West Virginia Rep. Riley Moore highlighted his experience fighting institutional investors as state treasurer and indicated he is also interested in codifying Trump’s proposal to get Wall Street off of Main Street. (RELATED: Blackstone Stock Nosedives As Trump Comes For Their Real Estate Cash Grab)

This is huge. Owning a home is the cornerstone of the American dream.

As State Treasurer, I fought with big institutional investors trying to undermine the American way of life. And I won.

Big institutional investors are now driving young people out of the housing market.… https://t.co/xMyZBSh7Nd

— Rep. Riley M. Moore (@RepRileyMoore) January 7, 2026

“Owning a home is the cornerstone of the American Dream. As State Treasurer, I fought big institutional investors trying to undermine the American way of life — and I won. Now, these investors are driving young people out of the housing market,” Moore said. “Homeownership is the cornerstone of the American Dream, and we cannot allow corporate interests to price families out. Congress must act to put families and communities ahead of private equity’s plans to make us a nation of renters. I look forward to working with my colleagues and President Trump to codify his proposal and restore access to homeownership for the next generation.”

The Caller also reached out to Anna Paulina Luna of Florida, who has introduced legislation to end congressional stock trading and has more broadly criticized corporate investment practices, but did not receive a response prior to publication.

Although there are a handful of politicians on either side of the aisle expressing excitement about Trump’s proposal or indicating they will introduce related legislation, there is no indication that the bipartisan group of supporters are collaborating on a broader proposal. And with so much of the GOP remaining silent, crossing party lines may be the only way to achieve Trump’s ambitious but broadly popular goal.