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US Treasury issues rule to bar investors from buying single
New York Post • • business
Key Points:
- The US Treasury is proposing a federal rule to implement a housing affordability bill that would ban institutional investors from purchasing single-family homes starting January 7, 2027, with exceptions for certain programs like build-to-rent and renovate-to-rent.
- The rule aims to increase housing supply and limit large investors' roles in the market to help American families and workers have a better chance at homeownership, according to Treasury Secretary Scott Bessent.
- The ROAD to Housing Act, which defines institutional investors as those owning 350 or more homes, became law without President Trump’s signature; he initially opposed it but later codified parts of it via executive order.
- The proposed rule will set standards for certain rental programs, provide safe harbor for renovations, and establish civil penalties for violations, followed by a 30-day public comment period.
- The move responds to long-standing concerns from both political sides about large investment firms buying up single-family homes and driving up housing prices.
