U.S. House Passes Bipartisan Housing Bill to Boost Supply and Limit Large Investors

The U.S. House passed a bipartisan housing bill on Wednesday that seeks to increase home construction and restrict large institutional investors from purchasing more single-family homes. Lawmakers approved the measure 396-13 and sent it to the Senate, where the two chambers must reconcile differences before the president can sign it into law.

The House version bans any group owning more than 350 houses from buying additional single-family homes. It removes a Senate requirement that large landlords sell build-to-rent homes after seven years. The legislation also includes deregulation measures such as easing rules for factory-built homes and streamlining environmental reviews for infill construction.

Both parties supported the bill ahead of November midterms as a response to rising home prices averaging $400,000 and a shortage estimated at four million units. A White House official said the administration supports the House version because of changes made to the original Senate measure.

“This bill prioritizes American families by expanding homeownership, enhancing affordability, reducing burdensome regulations that drive up costs, and increasing housing supply nationwide.”

Large institutional investors currently own about three percent of the single-family rental market, though their share is higher in some Sun Belt cities. Research shows mixed effects on prices and rents when investors increase their holdings, according to multiple analyses cited in coverage of the bill.

The Senate version had included a seven-year sell-off rule for build-to-rent properties that drew opposition from 79 industry groups, who warned it would reduce new housing production.