Senate Passes Bipartisan Bill To Ban Institutional Investors From Buying Single-Family Homes

The Senate on Monday overwhelmingly approved a revamped housing bill that would prohibit institutional investors from purchasing single-family homes, a move lawmakers say is aimed at making homeownership more affordable for American families.

The revised 21st Century Road to Housing Act passed in an 85-5 bipartisan vote.

Sens. Tommy Tuberville, Ron Johnson, Rick Scott, Rand Paul and Mike Lee voted against the legislation.

Tim Scott, chairman of the Senate Banking Committee, said the bill would help “lower costs, expand housing supply, cut red tape, protect taxpayers, and help more Americans achieve the dream of home ownership.”

“For me, this is personal. I know what it means for a family to have a safe, affordable place to call home because I watched my mother work hard to make that dream a reality in North Charleston, South Carolina,” Scott said.

The legislation includes a provision that would, for the first time, prevent private equity firms and other institutional investors from buying up single-family homes, an issue that has drawn bipartisan concern as housing prices have surged nationwide.

Elizabeth Warren, the top Democrat on the Banking Committee, called the legislation “historic.”

The Massachusetts senator noted that the measure would “for the first time ever” stop “private equity from buying up homes.”

The bill also extends the Community Development Block Grant-Disaster Recovery program for three years, helping states and local communities recover following presidential disaster declarations.

In addition, lawmakers included provisions aimed at easing banking regulations and making it easier for smaller community banks to return to mortgage lending.

The House version of the legislation passed by a 396-13 margin in May, while the Senate’s original version had cleared the chamber in an 89-10 vote in March.

Some Republicans had initially expressed concerns because portions of the Senate legislation were crafted by Warren. However, negotiators ultimately reached a compromise package that incorporated several House priorities.

French Hill, chairman of the House Financial Services Committee, said nine key House provisions were included in the final bill.

The Arkansas Republican called the legislation “a meaningful step toward increasing housing supply, improving affordability, and helping more Americans achieve homeownership.”

“I look forward to President Trump signing it into law,” Hill said.

President Trump first called on Congress in January to address institutional purchases of single-family homes, later signing an executive order directing the Justice Department and Federal Trade Commission to investigate Wall Street acquisitions of residential properties for potential anti-competitive practices.

If signed into law, the legislation would mark one of the most significant federal efforts in recent years to curb institutional ownership of single-family housing and increase opportunities for individual Americans to purchase homes.