FAQ: Would banning big investors from buying homes help first-time buyers?

At the margin, yes – especially in cities where large investors are very active. But big investors aren’t the main reason housing is unaffordable.

It’s easy to scapegoat giant property investors, but they own just 1-3% of single-family homes. Our affordability crisis has more to do with supply than demand. Local housing regulations that slow permitting, raise construction costs, and limit higher-density development play a far larger role than firms like Blackstone or Invitation Homes.

Even if big investors were banned from buying homes, the underlying problem would remain. Without increasing the overall housing supply through zoning reform, streamlined permitting, and incentives for new construction, prices would likely continue to rise. First-time buyers would still face stiff competition, just from other households rather than large investors. Tackling supply constraints is ultimately the most effective way to make housing more affordable for everyone.