President Donald Trump is seeking to limit the ability of large investors to expand their portfolios of single-family rental homes, stepping into a housing debate that has been simmering for years in fast-growing metro areas such as Atlanta. The move, outlined in an executive order signed last month, aims to address concerns that institutional buyers are contributing to higher housing costs. Details of how the order would be implemented remain unclear.
The proposal has drawn particular attention in the Atlanta region, which has the highest share of corporate-owned single-family rentals in the country. According to Bloomberg, institutional investors including Blackstone Inc., Progress Residential and Amherst Holdings control more than 30% of the single-family rental market in the area. That level of ownership has unsettled many local residents, who argue it has reshaped neighborhoods and driven up home prices.
In Paulding County, about an hour northwest of downtown Atlanta, the issue has become a rallying point. The exurban community, known for its wooded landscapes and church steeples, has seen a surge in rental-home developments and investor purchases of existing properties.
“We want to run our county in a proper way,” said Tim Estes, chair of the Paulding County Commission, which has imposed special requirements on rental-home subdivisions. “We don’t want a corporation with no skin in the game to come in and destroy our community and our way of living.”
The rise of large-scale corporate landlords accelerated after the 2008 housing crash and picked up speed again following the pandemic, particularly in Sun Belt markets. Per to Bloomberg, investor concentration can be especially pronounced in certain neighborhoods, even if their national footprint appears modest. While the top 24 institutional owners account for roughly 3% of all single-family homes nationwide, according to data from SFR Analytics cited by Bloomberg, their presence can climb to about half of the homes in some ZIP codes.
Not all investor activity looks the same. Some companies develop entire “build-to-rent” communities made up exclusively of newly constructed homes. Others purchase existing houses and convert them into rentals. Trump’s executive order reportedly carves out exceptions for certain new construction projects, reflecting arguments that building additional homes can help ease supply shortages.
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Critics of the president’s plan contend that restricting capital flows into rental housing may not bring down prices. “Blocking investors from putting more capital into rental homes is not going to make affordability any better,” Amherst Chief Executive Officer Sean Dobson told Bloomberg Television. “The math is not there. Our market share isn’t large enough to move home prices.”
Still, in Paulding County, residents say the impact feels tangible. The median listing price for a home there has climbed about 50% since early 2020 to roughly $390,000, surpassing the statewide increase of 33%, according to data from Realtor.com cited by Bloomberg. Some community members argue that the growth of investor-owned properties has altered the character of once-quiet neighborhoods, as rental subdivisions and commercial storage facilities replace long wooded driveways and horse paddocks.
“There’s not a single day of the week that I don’t get a call or a text, and it’s from a desperate social worker who’s been evicted from a home because the rental price just kept getting higher,” said Patti Long, founder of a local homeless charity.
Local officials are divided. In Hiram, one of Paulding County’s municipalities, City Councilwoman Melissa Bayardelle said investor-owned homes can boost municipal revenues but also disrupt neighborhood cohesion.
“They’re a great thing for tax collection,” said Bayardelle, who also works as a real estate agent. “But as a constituent, living in a subdivision, when you don’t know your neighbors and neighbors are constantly changing throughout the year… That neighborhood feel? You lose that.”
As Trump’s proposal takes shape, Atlanta has become a test case for whether federal action could complement local efforts to rein in large landlords. According to Bloomberg, policymakers in the region have already experimented with restrictions, though with uneven results. For now, many local leaders say they welcome the attention from Washington, even as they await specifics on how the executive order would be enforced and whether it will meaningfully shift the balance in one of the nation’s most investor-heavy housing markets.
Source: Bloomberg
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