Senate poised to advance housing bill to limit private equity purchases

Key Points:

• The Senate is set to vote on a bipartisan affordable housing bill aimed at increasing housing supply and limiting major investors from purchasing excessive single-family homes, with the House expected to vote later this week.
• The bill, supported by Senators Tim Scott and Elizabeth Warren, and Representatives French Hill and Maxine Waters, seeks to curb private equity's influence in the housing market by maintaining a 350-unit cap on investor-owned properties but removes a previous seven-year sell-by requirement.
• The legislation includes provisions to modernize federal housing programs, reduce regulatory barriers, tie Community Development Block Grant funding to housing supply increases, and fund redevelopment of vacant units.
• Supporters argue the bill addresses the housing shortage of over 4.7 million homes and aims to improve affordability, workforce mobility, and local economies ahead of the 2026 midterm elections, with President Donald Trump signaling support.
• Critics had initially opposed restrictions on institutional investors, fearing they would hinder new housing development, but a compromise was reached to balance investor limits with incentives for housing growth.