Senate Approves Housing Bill Limiting Large Investor Home Buys

The U.S. Senate overwhelmingly approved a bipartisan housing package on Monday night that includes new restrictions on large institutional investors purchasing additional homes, advancing a proposal tied to a housing policy President Donald Trump advocated earlier this year.

Known as the “21st Century ROAD to Housing Act,” the legislation contains a broad set of measures designed to increase housing availability and reduce barriers to new home construction. One of its most notable provisions would prohibit large institutional investors that already own more than 350 housing units from acquiring additional residential properties. The restriction, however, does not apply to build-to-rent developments.

The bill cleared the Senate by an 85-5 vote, reflecting strong bipartisan support. Before becoming law, the measure must still pass the House of Representatives and then be signed by the president. According to Politico, House leaders plan to accelerate the process by beginning consideration of the legislation on Tuesday.

The effort follows Trump’s call in January for limits on institutional investors purchasing homes, a proposal aimed at addressing housing affordability concerns. Reaching a bipartisan agreement proved challenging, as both chambers previously approved different versions of housing legislation. The Senate passed one version in March, while the House approved another in May, requiring further negotiations to produce the current compromise bill.

Supporters of the legislation argue it represents a significant step toward addressing housing shortages and affordability. Sen. Elizabeth Warren, D-Mass., described it as the “biggest bipartisan housing bill in 30 years,” saying it would increase housing supply, lower costs, and, for the first time, prevent private equity firms from buying single-family homes. Sen. Tim Scott, R-S.C., chairman of the Senate Banking Committee and one of the bill’s Republican negotiators, credited Trump for helping drive the effort to restrict institutional investors from purchasing single-family properties.

The five senators who voted against the bill were all Republicans: Sen. Rick Scott of Florida, Sen. Ron Johnson of Wisconsin, Sen. Tommy Tuberville of Alabama, Sen. Rand Paul of Kentucky, and Sen. Mike Lee of Utah.