Wall Street's biggest real estate investors suffered a heavy slump on Wednesday after President Donald Trump vowed to crack down on large institutional buyers of single-family homes.

Shares of Blackstone Inc. (NYSE:BX), one of the largest owners of U.S. residential and commercial real estate, slid 5.6% on Wednesday, marking their worst session since April.

The selloff quickly spread across the alternative asset management space. Apollo Global Management Inc. (NYSE:APO) fell 5.5%, KKR & Co. Inc. (NYSE:KKR) dropped 3.7%, and Ares Management Corp. (NYSE:ARES) declined about 3%. BlackRock Inc. (NYSE:BLK), the world’s biggest asset manager, slumped 3.3%.

The market reaction followed a social media statement from Trump framing homeownership as the cornerstone of the American Dream—one he indicates has become increasingly out of reach.

Citing years of high inflation and rising housing costs, ...