New federal law limits large investors from buying additional single-family homes

Sen. Elizabeth Warren said Thursday that a federal restriction on some large investors buying more single-family homes “is now law,” and that claim is correct. The measure she referenced was enacted in July as part of a broader housing package and took effect without President Donald Trump’s signature. The next phase is implementation by federal agencies before the purchase restriction begins Jan. 7, 2027.

In a post on Bluesky, the Massachusetts Democrat wrote: “Our bill to stop private equity from buying up homes is now law. Despite Donald Trump’s refusal to sign it, his Administration must now implement it. We’ll be watching closely to ensure it’s done right.” The relevant statute is H.R. 6644, the 21st Century ROAD to Housing Act, now Public Law 119-101. Its investor restriction appears in Title X, Section 1001, under the heading “Homes Are for People, Not Corporations.”

That section does not ban all corporations or all private-equity firms from owning houses. Instead, it bars certain “large institutional investors” from purchasing additional single-family homes. Under the enacted text, that term includes an entity that, after enactment, directly or indirectly has investment control of at least 350 single-family homes in total. The law defines a single-family home as a structure with two or fewer dwelling units intended for occupancy by a single household.

Trump had said publicly that he would not sign the bill. As quoted in contemporaneous reporting of his Truth Social post, he said: “I will not sign the Housing Bill, which has been fully approved by Congress and sent to the White House, in PROTEST over the fact that the United States Senate is not capable of passing THE SAVE AMERICA ACT …” But he did not veto it. Because the bill was presented to the president on June 29 and Congress remained in session, it became law automatically after the Constitution’s 10-day presentment period expired. It was enacted July 11.

The practical question now is how the executive branch will carry it out. The law directs the Treasury Department and the Department of Housing and Urban Development to implement rules and related programs, with consultation from agencies including the Federal Housing Finance Agency and the Securities and Exchange Commission. HUD also is directed to create renter outreach resources and produce reports on how effective the law is.

The statute gives enforcement authority to the Treasury secretary, or to the attorney general at Treasury’s request. It authorizes steep civil penalties. Section 1001 says penalties may be imposed “in an amount that is not more than $1,000,000 per violation, or 3 times the purchase price of the property involved, whichever is greater.”

The restriction applies prospectively, not retroactively. It covers future purchases and does not require firms to sell single-family homes they already owned before enactment. The law also includes several exceptions, including some homeownership programs and certain limited transactions involving other institutional owners or restructurings of ownership of homes already held before enactment.

The purchase ban takes effect 180 days after enactment, which falls on Jan. 7, 2027, and it is scheduled to sunset 15 years later, around Jan. 7, 2042.

The investor restriction was one piece of a much larger housing bill that passed Congress with broad bipartisan support. The Senate approved the package 85-5 on June 22, and the House followed the next day by a 358-32 vote.