Senate Democrats Introduce Bill to Bar Institutional Investors From Buying Single-Family Homes

A group of Democratic senators introduced legislation on Tuesday that targets institutional investors buying large numbers of single-family homes. The bill was introduced on the same day as President Donald Trump’s State of the Union address, in which he emphasized a similar goal.

The bill, introduced by Senator Elizabeth Warren, D-Massachusetts, and co-sponsored by 16 Democratic senators and Senator Bernie Sanders, I-Vermont, would eliminate key tax benefits in an effort to discourage large corporate investors from buying up single‑family homes.

The bill removes two major tax benefits—interest deductions and depreciation deductions—for any taxpayer that owns at least 50 single‑family residential rental properties, counted across all related entities.

These deductions would only be allowed in the year the property is sold, and only if the sale is to an owner/occupant purchasing a principal residence or to an eligible nonprofit involved in affordable housing. The bill also deems it illegal for corporations to buy up more than 30% of any given housing market.

The legislation seemingly represents Democrats’ response to a January executive order by Trump that sought to restrict institutional investors from buying single-family homes as part of his affordability agenda. As part of the executive order, Trump called on Congress to create legislation and ban institutional investors that own more than 100 single-family homes from buying any new ones.

During his State of the Union address on Tuesday, Trump offered few details about the specifics of his plan, despite much of his speech addressing affordability and the economy. He did, however, insist that mortgage rates are declining and will fall further with interest rate cuts, making homes more affordable without lowering their prices, which would hurt homeowners.

Trump made clear his desire to ban institutional investors from purchasing single-family homes.

“We want homes for people, not corporations,” Trump said.