Bipartisan Senate bill aims to ban large investment funds from buying single-family homes

WASHINGTON – Senators Josh Hawley (R-Mo.) and Jeff Merkley (D-Ore.) have introduced a bipartisan bill to ban large investment firms from purchasing single-family homes, a move aimed at tackling the U.S. housing affordability crisis.

The proposal follows a call from President Trump during his State of the Union address for lawmakers to restrict institutional investors from buying residential properties. Known as the Housing for American Families Act, the bill would amend the Sherman Antitrust Act of 1890.

Under the legislation, investment funds managing more than $150 million in assets would be prohibited from purchasing single-family houses, condominiums, or townhomes.

The move comes as Americans face increasingly prohibitive housing costs. Federal Reserve data shows that homebuyers currently need to earn 43% more than the average salary to afford a typical home.

While large institutional investors own 3.8% of all rental homes nationwide, their market share is significantly higher in some regions. In Atlanta, for example, institutional investors own 28% of such properties.

Despite the focus on investment firms, many experts argue that the primary driver of the crisis remains a persistent nationwide housing shortage.

The emergence of bipartisan support for a new housing bill in Washington signals that voter anxiety over affordability has reached a breaking point, successfully bridging the traditional partisan divide. The legislation takes aim at institutional investors—a politically convenient "villain" for lawmakers—capitalizing on recent rhetoric from former President Donald Trump to frame Wall Street as the primary driver of the housing crisis.

However, market analysts are questioning whether the proposal addresses the actual mechanics of the real estate market. While institutional buyers represent a formidable competitor for individual families, data indicates they own only 3.8% of the national rental housing stock. Most economists maintain that the core issue is a chronic supply deficit that has worsened since the 2008 financial crisis. Goldman Sachs estimates that the United States currently faces a shortfall of four million homes.

Consequently, the bill is increasingly viewed as an attempt to treat the symptoms of the crisis rather than its root cause. While barring large investment funds may reduce competition in high-demand markets like Atlanta or Charlotte, the move does not add a single unit to the national inventory. It is a populist solution that resonates with voters but avoids the far more complex challenges of zoning reform and incentivizing large-scale construction.

This bill carries a direct and positive impact for Vietnamese American families. For many in our community, homeownership is the cornerstone of the American Dream and a primary vehicle for building generational wealth. Whether they are entrepreneurs in the nail salon industry or the faces behind our local phở restaurants, Vietnamese families often face uphill battles against institutional investment funds making aggressive all-cash offers. After years of disciplined saving, many families from Little Saigon to the suburbs of Houston are still outbid in a market that favors corporate interests over individual buyers. If passed, this legislation will level the playing field, creating a fair shot for Vietnamese families to purchase their first homes—particularly in major community hubs across California, Texas, and Georgia.