Will Banning Corporate Homebuyers Fix the Housing Affordability Crisis? A Las Vegas Perspective

Will Banning Corporate Homebuyers Fix the Housing Affordability Crisis? A Las Vegas Perspective

Homeownership has long been viewed as a cornerstone of the American Dream, but in recent years, that dream has become increasingly difficult to attain—especially in fast-growing markets like Las Vegas. As housing affordability continues to dominate national conversation, President Donald Trump’s recent pledge to ban large institutional investors from buying single-family homes has sparked debate among real estate experts and policymakers.

Trump’s Housing Pledge

In a January 8 post on Truth Social, President Trump announced plans to immediately take steps toward banning large institutional investors from purchasing additional single-family homes. He also called on Congress to codify the proposal into law, arguing that corporate ownership has made homeownership less accessible for everyday Americans.

The announcement drew attention in Nevada, where investor activity in the housing market has historically outpaced much of the nation.

Las Vegas: A Hotspot for Investor Activity

According to Shawn McCoy, Director of the Lied Center for Real Estate at the University of Nevada, Las Vegas, investor purchasing in Las Vegas ranks among the highest in the country.

“Investor activity in Vegas exceeds national averages and ranks in the top three in the country for investor purchasing,” McCoy explained.

However, McCoy emphasized that while investor activity is a critical topic, policymakers need more comprehensive data before drawing definitive conclusions about how such a ban would affect housing prices.

Will a Ban Lower Home Prices?

Despite the attention surrounding Trump’s pledge, McCoy cautions that banning corporate investors alone is unlikely to significantly reduce housing costs.

“At its core, affordability problems aren’t going away entirely because we simply do not have enough housing to house our population,” McCoy said.

He outlined three conditions that would be required to return housing affordability to pre-pandemic levels:

• Mortgage rates would need to fall to 2.65%

• Incomes would need to rise by 56%

• Home prices would need to decline by 35%

Without one or more of these changes, McCoy believes affordability challenges will persist—even if corporate investors are removed from the market.

How Much of the Market Do Investors Control?

A November 2025 research report cited by McCoy found that between 2009 and 2024, investors accounted for 14% to 29% of all home sales each year. In total, nearly 100,000 homes were purchased by investors during that period—roughly one in five homes sold.

Much of this investor presence can be traced back to the Great Financial Crisis of 2008, when Las Vegas became one of the nation’s foreclosure epicenters.

Neighborhood-Level Impact

McCoy noted that investor activity in Las Vegas is not evenly distributed. Historically, investors have concentrated their purchases in north and far northwest valley neighborhoods, often targeting homes priced below the median.

Because of this, a ban on institutional investors could have modest effects on the overall market, while potentially creating more meaningful opportunities in specific neighborhoods where investor ownership has been most concentrated.

Investor Activity Is Already Declining

Investor purchasing in Las Vegas peaked in 2022, driven by low interest rates and inexpensive borrowing during the COVID-19 pandemic. Since then, higher interest rates, tighter lending conditions, and rising home prices have cooled investor demand.

While investor activity in 2025 remains higher than levels seen before the Great Financial Crisis, it is significantly lower than during the 2020–2022 surge.

The Bottom Line

Trump’s proposal to ban large institutional investors from buying single-family homes may help rebalance competition in certain Las Vegas neighborhoods, but experts caution it is not a silver bullet. Without increasing housing supply or addressing broader economic factors, affordability challenges are likely to remain.

As the policy discussion continues, Las Vegas serves as a clear example of how complex—and localized—the housing affordability crisis truly is.

Reference

8 News Now (KLAS). Real estate expert weighs in on Trump’s housing pledge.
https://www.8newsnow.com/news/real-estate-expert-weighs-in-on-trumps-housing-pledge/