House approves breakthrough housing bill in a win for investors

Key Points:

• The U.S. House approved a bipartisan housing affordability bill 396-13 that limits major investors from buying single-family homes but allows them to build additional housing units, aiming to balance investor restrictions with housing supply.
• The bill, supported by the White House after last-minute changes, removes a Senate requirement forcing major investors (owning 350+ units) to sell any units built beyond a cap within seven years, gaining backing from rental, construction, and housing industries.
• The legislation has faced back-and-forth negotiations between the House and Senate, with disputes over investor oversight provisions delaying final passage; it remains uncertain if the Senate will approve the revised House bill with the needed 60 votes.
• Some senators, including Sen. Bernie Moreno, argue the House version weakens efforts to increase homeownership by gutting the forced sale provision, which they believe is essential to prevent build-to-rent investors from limiting single-family home purchases by young buyers.
• Senate Majority Leader John Thune indicated the Senate will address the House-passed bill accordingly, while Sen. Elizabeth Warren collaborated with the White House to incorporate Democratic-supported provisions into the legislation.