Blocking Corporate Buyers Won't Fix Housing As 80% Of Investors Are Individuals, Strategist Warns

President Donald Trump's latest executive order aims to lower housing costs by blocking Wall Street from buying single-family homes, but a leading investment strategist warns the move targets the wrong group and could trigger market instability. ‘Mom-And-Pop’ Reality Check According to Jina Yoon, Chief Alternative Investment Strategist at LPL Financial, the administration’s “Main Street vs. Wall Street” narrative ignores the mathematical reality that individual investors, not corporations, are the dominant force crowding out homebuyers. While the White House frames the order as a crackdown on corporate giants, data cited by Yoon suggests the impact will be minimal. In a recent analysis, Yoon noted that while investors purchased a record-high 30% of single-family homes in the first half of 2025, the vast majority—nearly 80%—were “mom-and-pop” investors, not large institutions. “Large institutional investors represent only 2–3% of the total single-family houses nationwide,” Yoon explained, adding that this ownership is highly concentrated in specific hubs like Atlanta, Phoenix, and Charlotte. As a result, a nationwide ban on corporate buyers leaves the bulk of investor competition—small landlords and individual flippers—completely untouched. Structural Flaws And Unintended Consequences Beyond the numbers, Yoon argues the order fails to address the “structural factors” actually driving the affordability crisis: chronic supply shortages, zoning constraints, and high mortgage costs. Furthermore, she warns of a “loophole effect.” Because the order restricts purchasing existing homes but exempts new construction, institutional capital is expected to shift aggressively into “Build-to-Rent” (BTR) projects. Rather than increasing homeownership, the policy could ironically accelerate the development of entire communities owned and managed by the very corporations the President intends to curb. Market Volatility Ahead The lack of concrete details in the order—which relies on Congress to codify a ban and the Treasury to define key terms—has left markets on edge. “Publicly traded REITs and real estate investment firms could experience increased volatility,” Yoon cautioned, reflecting investor uncertainty. Here’s a list of a few REITs and real estate-linked ETFs that investors could consider amid these developments. ETFsYTD Performance6-Month PerformanceOne Year PerformanceSPDR S&P Homebuilders ETF (NYSE:XHB)9.84%7.61%2.97%Vanguard Real Estate Index Fund ETF (NYSE:VNQ)3.10%-0.65%1.69%Schwab US REIT ETF (NYSE:SCHH)3.01%-1.06%2.13%Real Estate Select Sector SPDR Fund (NYSE:XLRE)2.90%-2.76%1.09%iShares US Real Estate ETF (NYSE:IYR)2.83%-1.17%2.82%iShares Core US REIT ETF (NYSE:USRT)3.15%1.57%2.47%DFA Dimensional Global Real Estate ETF (NYSE:DFGR)1.93%-1.71%5.10%SPDR Dow Jones REIT ETF (NYSE:RWR)3.00%2.47%2.64% Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Garun Studios/Shutterstock