Senate Passes Bill to Restrict Wall Street Home Purchases
WASHINGTON — The Senate has approved a bipartisan bill that would prohibit Wall Street investors from acquiring single-family homes. This legislation is now headed back to the House, where it might encounter significant challenges before potentially reaching President Trump’s approval.
The bill passed with a vote of 89 to 10, incorporating provisions from the 21st Century ROAD to Housing Act into a previously approved House bill, which will require another round of approval from the House.
Among its measures, the bill aims to ease regulations on construction and environmental assessments while establishing a new block grant initiative focused on building units and affordable housing.
This collaborative effort intends to tackle rising housing costs as part of a wider affordability strategy.
Notably, institutional investors, such as Blackstone, which holds a significant number of single-family homes, will be restricted from purchasing more family residences.
Senate Banking, Housing, and Urban Affairs Chairman Tim Scott (R-S.C.) and Senator Elizabeth Warren (D-Mass.) co-authored the package.
“This is about increasing supply,” Warren noted during her speech on the floor, emphasizing that anyone opposing the bill would need to justify why they resist expanding housing options for homeowners.
Scott echoed similar sentiments in his pre-vote remarks, stating that housing should unite both sides of the aisle. He related it to his upbringing, mentioning that his mother didn’t own a home until she was 38, at which point she was supporting two boys in a modest rental space.
“It’s striking that the typical age for first-time homebuyers is now 40,” Scott remarked. “That’s simply too late for the American Dream.”
On the flip side, Senator Thom Tillis (R-N.C.) expressed opposition to the bill, arguing that it leans too far left.
“When did conservative Republicans start aligning with Elizabeth Warren on housing policy?” Tillis was quoted as saying.
Meanwhile, House Freedom Caucus Chairman Andy Harris (R-Md.) has already stated his disapproval of the bill, asserting that it won’t be received positively in the House.
Some conservative voices have criticized this Trump-backed provision against institutional homeownership, labeling it a “socialist” move. Others are also apprehensive about a banking provision intended to restrict the Federal Reserve’s capabilities regarding digital currencies.
In January, President Trump urged Congress to legislate against investor home purchases. He subsequently signed an executive order directing the Justice Department and the Federal Trade Commission to examine Wall Street’s single-family home acquisitions for potential anticompetitive behaviors.
The announcement resulted in a drop in shares for Blackstone, Apollo Global Management, and Invitation Homes, which is the largest single-family rental company in the U.S.
A representative from Blackstone noted in February that the company’s homeownership constitutes merely 2% of U.S. real estate assets, mentioning that they have sold more homes than they have acquired in the past ten years.
Historically, Wall Street firms have purchased large quantities of homes following the 2008 financial crisis, capitalizing on a wave of foreclosures.
