New Legislation to Restrict Wall Street from Buying Single-Family Homes

Sens. Josh Hawley (R-MO) and Jeff Merkley (D-OR) are putting forward the Housing for American Families Act, aimed at preventing Wall Street firms from purchasing single-family homes nationwide. Recently, President Donald Trump encouraged legislators to formalize an existing executive order that supports this initiative.

This legislation, announced by Hawley and Merkley on Thursday, would disallow large institutional investors from acquiring single-family residences, townhouses, and condominiums.

“Wall Street has exploited America’s housing crisis, turning it into a portfolio of rental properties,” Hawley remarked in a statement.

“Families deserve the opportunity to own their homes and pursue the American Dream without competing against major investment firms. This buying spree pushes housing prices further out of reach. That’s why I’m advocating for legislation to finally stop Wall Street from purchasing single-family homes.”

The senators also revised the HOPE Act, which motivates Wall Street firms and hedge funds to sell the single-family homes currently in their possession.

“Our communities should be homes for families, not just profit generators for hedge funds,” Merkley stated. “As corporate investors encroach on housing markets nationwide, we must act to safeguard the hardworking Americans striving for homeownership. With bipartisan backing, we have an opportunity to confront the billionaire corporations that are monopolizing America’s homes, and I’m ready to collaborate with the President, Republicans, and Democrats to tackle this issue.”

In his State of the Union address, President Trump urged Congress to codify the executive order designed to restrict large institutional investors from purchasing single-family homes, aiming to make these properties more accessible to American families.

“Homeownership is another fundamental aspect of the American dream that is under siege,” President Trump noted in his speech.

“Tonight, we highlight Rachel Wiggins, a Houston mother of two who placed bids on 20 homes, only to lose all of them to large investment firms. These companies bypassed inspections, paid cash, and converted the homes into rental properties. Her American dream was taken from her, leaving her devastated.”

“Stories like Rachel’s prompted me to sign an executive order last month to prevent large Wall Street investment firms from acquiring thousands of single-family homes. Now, I’m urging Congress to make this ban permanent. We need homes for people, not for businesses.”

Trump’s remarks during the address drew applause not only from Republicans but also from some progressive Democrats, such as Sen. Elizabeth Warren (D-Mass.), which was notable in the context of the speech.