Senate Passes Bill to Reduce Housing Costs
On Monday, the Senate approved an updated bill aimed at lowering housing costs across the United States. Notably, this legislation includes a ban on institutional investors from acquiring single-family homes.
The revamped 21st Century Housing and Highways Act received strong bipartisan support, passing with a vote of 85-5.
Among those opposing the bill were Republican Senators Tommy Tuberville, Ron Johnson, Rick Scott, Rand Paul, and Mike Lee.
Senator Tim Scott, who chairs the Banking Committee, stated before the vote that the bill is designed to “lower costs, expand housing supply, reduce red tape, protect taxpayers, and help more Americans realize their homeownership dreams.”
Scott shared a personal connection to the issue, recalling how he watched his mother strive to make homeownership a reality in North Charleston, South Carolina. He emphasized the importance of having a safe and affordable place to live.
On the other side, Senator Elizabeth Warren, the top Democrat on the committee, called the measure “historic,” outlining its potential to prevent private equity firms from purchasing homes for the first time in history.
House members have been advocating for this restriction, alongside a three-year extension of the Community Development Block Grant Disaster Recovery Program, aimed at helping communities recover from disasters declared by the president.
The compromise bill also addresses bank deregulation, simplifying mortgage lending processes for small banks.
Previously, the House version of the bill passed overwhelmingly with a vote of 396-13 in May, while the Senate version saw a favorable vote of 89-10 in March.
Despite some initial resistance from certain Republicans regarding Warren’s Senate proposal, Rep. French Hill of Arkansas, who leads the House Financial Services Committee, noted that crucial elements were retained in the final version. He described the bill as “a meaningful step toward increasing housing supply, improving affordability, and making homeownership attainable for more Americans.”
Hill looked forward to the bill being signed into law by President Trump, who had urged Congress earlier in January to act against investors buying single-family homes. Trump also signed an executive order directing the Justice Department and the Federal Trade Commission to investigate Wall Street’s impact on home purchasing, particularly concerning anticompetitive effects.
