Real Estate Blog

Housing affordability has become one of the most talked-about real estate topics in the country, and recently Donald Trump added fuel to the conversation.

Trump has publicly asked Congress to stop large institutional investors from buying residential properties, specifically single-family homes, and renting them out. His argument is simple: homes should be for people, not corporations.

But like most housing policies, the idea comes with both potential benefits and real concerns. And while this is a national discussion, it’s fair to ask how something like this could impact South Dakota real estate and the Brookings housing market.

Let’s take a closer look.

What Is Being Proposed?

The proposal calls for limiting or banning large corporate investors such as private equity firms and major institutional landlords from purchasing single-family homes. These companies often buy homes in bulk and turn them into long-term rental properties.

The goal is to:

• Reduce competition for everyday homebuyers

• Increase homeownership opportunities

• Improve housing affordability

This proposal is still in discussion stages and would require action from Congress to become law.

Why This Is a Hot Real Estate Topic Right Now

Across the U.S., buyers are competing in markets with:

• Low housing inventory

• Rising home prices

• Higher mortgage rates

When large investors enter the market with cash offers, some buyers feel pushed out. While institutional investors own a small percentage nationally, their presence can feel more noticeable in certain markets.

Potential Pros of Limiting Corporate Home Buyers

✅ Less Competition for Buyers
First-time homebuyers and local families may face fewer competing offers, especially from cash-heavy investors.

✅ More Homes for Owner-Occupants
Keeping single-family homes available for people who want to live in them could help stabilize neighborhoods.

✅ Improved Community Stability
Owner-occupied homes often lead to longer-term residency, stronger neighborhood ties, and more community involvement.

✅ Public Confidence in Housing Policy
The proposal sends a message that housing affordability is being taken seriously at a national level.

Potential Cons and Concerns

⚠️ May Not Lower Prices Significantly
Most economists agree that the biggest housing issue is lack of supply, not just investor demand. Limiting buyers doesn’t create more homes.

⚠️ Defining “Large Investor” Is Tricky
Where does the line get drawn? Does it affect small landlords? Local investors? Family-owned rental companies?

⚠️ Rental Market Impact
Fewer investor-owned homes could mean fewer rental options, which may increase rents for those who aren’t ready to buy.

⚠️ Limited Impact in Smaller Markets
In places like Brookings, institutional investors are far less common, so the local effect may be minimal.

What Could This Mean for Brookings and South Dakota?

South Dakota markets tend to be more stable and less investor-driven than large metro areas. If restrictions were put in place:

• Local buyers might see modest benefits

• Pricing would still largely depend on inventory and demand

• New construction and zoning would remain key factors

In other words, this proposal alone wouldn’t dramatically change the Brookings real estate market, but it could shape future policy conversations.

Questions to Think About

• Do you think corporations should be allowed to own large numbers of single-family homes?

• Would limiting investors really help first-time buyers, or is more housing supply the real solution?

• How important is homeownership versus rental availability in a healthy housing market?

• Would policies like this make you more confident about buying a home?

These are the same questions lawmakers, economists, and housing professionals are debating right now.

Final Thoughts from the Home Team 605

Housing affordability is complex. While proposals like this aim to help buyers, there’s no single solution that fixes everything. Real estate is local, and national policies tend to impact markets differently depending on location.

At the Home Team 605, our focus is helping you understand how national housing trends affect local decisions—so you can make smart, confident moves whether you’re buying, selling, or investing.

???? If you want to talk about what’s happening in the Brookings housing market right now, let’s connect.

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• Supply (44)
• Renting (27)
• President (2)
• Corporate Investors (1)
• Residential Homes (1)
• Congress (1)