Invitation Homes

INVH

Market cap $16.4B

Single Family Rental REITs and private-equity stocks sold off sharply this week after President Trump floated the idea of banning large institutional investors from purchasing single-family homes. While we doubt this sweeping policy ultimately becomes law, there is a non-zero chance some version advances, as housing affordability becomes a major focus in 2026 ahead of midterms. We believe it is reasonable that any policy would include a public REIT carve-out, consistent with existing legal precedent that treats REITs as transparent, regulated, and distinct from private equity.

The time of the corporate landlord as America's housing villain was supposed to be over.  Money managers like Blackstone Inc. and Pretium who binged on single-family rentals in the wake of the financial crisis took blow after blow as housing prices shot up.

Invitation Homes is a strong buy after a sharp selloff driven by regulatory fears, now yielding 4.5%. Potential restrictions on institutional home buying could catalyze share repurchases and dividend growth, enhancing shareholder returns. INVH's core growth lever remains rent increases, with management targeting mid-3% baseline FFO per share growth.

Invitation Homes is upgraded to a 'strong buy', despite recent political headwinds and a 15% share price decline over the past year. A potential federal ban on institutional SFR purchases introduces uncertainty, but is unlikely to force INVH to divest existing holdings. INVH trades at a significant discount to its net asset value, with estimated NAV over $33 per share and robust underlying portfolio economics.

On Wednesday, President Donald Trump said he would take steps to ban large institutional investors from buying single-family homes. Real estate-related stocks reacted sharply downward.

President Donald Trump said he would take steps to ban large institutional investors from buying single-family homes, which he said have become “increasingly out of reach for far too many people, especially younger Americans.”

It isn't clear whether congressional approval would be needed to institute such a ban.

Median sale price was at $410,800 last year, according to the Census Bureau, even as Trump campaigned on affordability

CNBC's "The Exchange" team discusses President Trump's social media post about banning institutional investors from buying more single-family homes.

Trump did not say exactly how his plan would work, but it represents a major new initiative to lower the cost of homeownership.