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Newsom, Trump Unite to Restrict Corporate Homeownership

  //house-home.news-articles.net/content/2026/02/0 .. p-unite-to-restrict-corporate-homeownership.html
  Published in House and Home on Saturday, February 7th 2026 at 5:09 GMT by CBS News
      Locales: California, UNITED STATES

Sacramento, CA - February 7th, 2026 - In a political landscape often defined by division, an unlikely alliance is forming around a surprisingly common cause: restricting corporate ownership of single-family homes. California Governor Gavin Newsom and former President Donald Trump, figures seemingly at opposite ends of the spectrum, are both publicly supporting measures designed to limit the ability of large corporations and institutional investors to purchase residential properties.

This convergence of viewpoints centers on the escalating housing affordability crisis gripping the nation, and a growing belief that corporate involvement is exacerbating the problem. While details differ, both leaders agree that the current trajectory - where investment firms can outbid average families for homes - is unsustainable and threatens the traditional American Dream of homeownership.

Governor Newsom's initial proposal, unveiled last month, calls for a temporary two-year moratorium on the purchase of single-family homes by corporate entities within California. This pause isn't intended as a permanent fix, but rather a cooling-off period. Crucially, it would allow the establishment of a dedicated task force to thoroughly investigate the extent of corporate home buying, analyze its impact on the California housing market, and formulate long-term, data-driven solutions. The task force would comprise housing economists, real estate professionals, community advocates, and representatives from both the public and private sectors.

Former President Trump, speaking at a rally in Florida earlier this week, echoed Newsom's concerns. While lacking a detailed legislative plan, Trump stated emphatically that corporations shouldn't be allowed to "vacuum up" the housing stock, leaving ordinary Americans unable to compete. He framed the issue as a matter of national sovereignty and protecting American families, a familiar refrain in his political rhetoric. His remarks, though brief, were enough to signal a clear alignment with the core principles of Newsom's proposal. Sources close to Trump indicate he is considering a national-level initiative mirroring the California moratorium, potentially tying it to broader economic protectionist policies.

The Rise of Institutional Investors and the Housing Crisis

The surge in corporate home buying began accelerating in the wake of the 2008 financial crisis. Institutional investors, including private equity firms, hedge funds, and real estate investment trusts (REITs), identified single-family rentals as a lucrative investment opportunity. Post-pandemic, this trend intensified. Driven by low interest rates and a desire for stable returns, these entities have been aggressively purchasing homes, often paying in cash and waiving traditional contingencies, effectively pricing out many individual homebuyers, particularly first-time buyers.

Data compiled by several housing market analysis firms show a significant increase in institutional ownership in key metropolitan areas. In cities like Phoenix, Atlanta, Charlotte, and Dallas, institutional investors now own a substantial percentage of the single-family home inventory. This concentration of ownership has contributed to both inflated prices and a shrinking supply of homes available for sale to individuals and families. Furthermore, it's created concerns about the potential for rent increases and reduced homeownership opportunities in these communities.

Legal Challenges and Potential Outcomes

Both the proposed California moratorium and any potential federal legislation face potential legal challenges. Opponents argue that such restrictions could violate federal antitrust laws or run afoul of the Commerce Clause of the U.S. Constitution. Real estate industry groups are likely to argue that the measures unfairly discriminate against institutional investors and limit property rights. Legal experts predict a protracted battle in the courts if these proposals are enacted.

Despite the legal hurdles, the bipartisan support offers a glimmer of hope for addressing the housing affordability crisis. Analysts suggest that even if a full moratorium is struck down, the debate will likely spur further discussion and potentially lead to more targeted solutions, such as increased taxes on corporate home purchases, stricter regulations on rental properties owned by institutional investors, or incentives for individual homebuyers.

The alignment of Newsom and Trump on this issue is unprecedented. It underscores the widespread frustration with the current state of the housing market and a growing recognition that bold action is needed. While the long-term consequences of this unexpected alliance remain to be seen, it signals a potential shift in the conversation surrounding housing affordability and a willingness to explore innovative solutions, even from the most unlikely of sources.