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Elevated housing prices are daunting enough for today’s homebuyers — but competing with trillion-dollar institutions makes the challenge even tougher. President Donald Trump says he’s trying to put a stop to that.
“For a very long time, buying and owning a home was considered the pinnacle of the American Dream,” Trump wrote on Truth Social on Jan. 7 (1). “That American Dream is increasingly out of reach for far too many people, especially younger Americans. It is for that reason and much more, that I am immediately taking steps to ban large institutional investors from buying more single-family homes and I will be calling on Congress to codify it.”
Trump emphasized that “people live in homes, not corporations,” adding that he’ll lay out additional housing and affordability proposals at the upcoming World Economic Forum in Davos, Switzerland.
The announcement sent shockwaves through the market. Shares of Blackstone (BX) — the world’s largest alternative asset manager with more than $1.2 trillion in assets under management — tumbled as much as 9.3% before closing down 5.6% on Jan. 7. Single-family rental REITs were hit as well: American Homes 4 Rent (AMH) slid 4.3%, while Invitation Homes (INVH) fell 6.0%.
Institutional investors don’t dominate the housing market — but they still play a notable role. A 2023 report from Parcl Labs found that institutions own 3.4% of U.S. single-family homes — and the biggest players, those holding more than 1,000 units, account for only 0.73% (2).
Yet their activity has had measurable effects.
A research paper from the Federal Reserve Bank of Philadelphia found that the surge in institutional buyers in the single-family residential market between 2006 and 2014 contributed to 58% of the increase in the real house price growth during that period — and that these institutional investors were responsible for 75% of the decline in homeownership rates (3).
Other experts, however, point to a deeper, structural issue: supply. In 2024, Federal Reserve Chair Jerome Powell warned, “The real issue with housing is that we have had and are on track to continue to have, not enough housing (4).” He pointed to the difficulty of finding and zoning land in desirable areas, asking, “Where are we going to get the supply?”
A recent Zillow report estimates the U.S. faces a shortage of 4.7 million homes (5).
Given those dynamics, it’s no surprise that investors — including institutional ones — continue to view real estate as a long-term opportunity. The asset class can generate passive income through rent and offers a built-in hedge against inflation. When inflation rises, property values and rental income often rise alongside the cost of living, creating a natural buffer and a dependable stream of cash flow.
And here’s the twist: Even as policymakers debate how to rein in big players, ordinary investors don’t have to sit on the sidelines. New platforms and strategies now let everyday Americans tap into real estate opportunities without needing deep pockets — or a bidding war.
Traditionally, buying an investment property means saving for a sizable down payment, securing a mortgage, purchasing the home, finding tenants and handling the day-to-day management. That’s a tall order in a market defined by elevated prices and high interest rates.
But crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating corner of real estate.
In other words, instead of one giant investor buying many homes, it’s many small investors owning slices of a single property.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
If you’ve ever been a landlord, you know how important it is to have reliable tenants.
Now, picture that tenant being a Fortune 500 company. Of these, how do grocery stores sound?
That’s where First National Realty Partners (FNRP) comes in. The platform allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Owning a rental property sounds great — until something goes wrong. One bounced check and your rental income disappears.
But institutional investors don’t face that problem. Their portfolios are diversified across hundreds — sometimes thousands — of units.
Now, accredited investors can tap into that same approach through platforms such as Lightstone DIRECT, giving you access to institutional-quality multifamily and industrial real estate — with a minimum investment of $100,000.
Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the U.S., with more than $12 billion in assets under management.
Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles — including a 27.5% historical net IRR and a 2.49x historical net equity multiple on realized investments since 2004.
Here’s the kicker: Lightstone invests at least 20% of its own capital in every deal — roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.
As home prices have risen over the years, Americans have built substantial wealth through homeownership, but the $35 trillion U.S. home equity market has historically been dominated by large institutions.
Homeshares is changing the game by allowing accredited investors with a minimum $25,000 investment to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.
