Congress passed a landmark housing bill with bipartisan support, including boosting the building of homes and cracking down on large investors' ability to buy single-family homes.
The bill passed with a 358-32 vote a day after making it through the Senate by an 85-5 vote. President Donald Trump is expected to enact the law.
Called the 21st Century ROAD to Housing Act, it includes funding and pilot programs to build new homes, while also easing some regulations and allowing local governments to accelerate reviews for projects.
NBC News detailed that the version that passed includes changes to part of the initiative that included restrictions on large institutional investors and private equity-backed firms purchasing single-family homes. The provision, put forward by Sens. Bernie Moreno and Raphael Warnock, prevents institutional investors that own more than 350 single-family homes from buying more.
"Road to housing is the first time that Congress has said to private equity, 'Enough: You don't get to move in to one neighborhood after another in America, and turn us from a nation of owners to a nation of renters'," said Democratic Sen. Elizabeth Warren.
Senate Banking Committee Chairman Tim Scott, involved in the passing of the bill, also hailed the development, calling it the "result of years of work to lower costs, expand housing supply, cut red tape, protect taxpayers, and help more Americans achieve the dream of homeownership."
Overall, the bill contains roughly 50 separate initiatives designed to increase housing supply, encourage homebuilding, streamline certain regulatory requirements, expand financing options, and improve affordability for prospective buyers.
Housing affordability remains one of the most pressing economic concerns facing Americans. Home prices have risen sharply over the past several years, while mortgage rates have remained elevated. Many first-time buyers have complained that cash offers from institutional investors make it even harder to purchase homes, particularly in fast-growing markets across the South and Southwest.
Research cited during the debate shows that large institutional investors own a relatively small share of the nation's overall single-family housing stock, estimated at roughly 3%, but their presence is often concentrated in specific metropolitan areas where competition for homes is especially intense.
Critics, however, warn that restricting institutional investment could have unintended consequences. They have argued that limiting investor participation does not directly increase housing supply and that it should be up to local governments.
