US Senate Passes Bipartisan Housing Bill Banning Corporate Investors
The United States Senate passed a bipartisan housing bill on Monday, June 22, 2026, in a rare show of cross-party cooperation aimed at addressing the nation's housing affordability crisis. The bill, which passed by a vote of 85-5, now moves to the House of Representatives for final approval, with President Donald Trump indicating support.
The legislation seeks to increase housing supply and lower prices by reducing federal regulations and expanding local control. A key provision bans corporate investors from purchasing single-family homes, a move intended to prevent Wall Street firms from turning housing into speculative investments. However, a Senate provision requiring corporate investors to sell newly built homes within seven years was dropped from the final version.
Senator Tim Scott, Republican chairman of the Senate Banking Committee, described the bill as 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.' Senator Elizabeth Warren, the top Democrat on the committee, called it the most significant housing bill since 1990, when the average US home cost $150,000 compared to over $500,000 today. She noted that 'for the first time ever, private equity will be blocked from buying up single-family homes.'
The housing market has been in a prolonged slump since 2022, when mortgage rates began rising from pandemic-era lows. Sales of previously owned homes have hovered around 4 million annually, well below the historical norm of 5.2 million, and reached a 30-year low last year. A report from the Joint Center for Housing Studies at Harvard University found existing home sales at three-decade lows and inventories rising due to high costs. The Economic Report of the President in April identified a shortage of 10 million homes. Meanwhile, median monthly rent, though declining for nearly three years, remains 17.2% higher than before the pandemic, according to Realtor.com data.
To boost supply, the bill streamlines environmental reviews and speeds up construction processes. It offers funding to local governments that build more housing, including Community Development Block Grant money for areas exceeding median homebuilding rates. Additional funds are allocated for converting abandoned infrastructure into housing, and the bill provides a framework for reforming outdated zoning regulations that often limit larger developments. It also allows banks to invest more in affordable housing and raises limits for certain programmes.
Representative Maxine Waters, a Democrat from California who helped negotiate the legislation, called it a 'huge step toward finally addressing the affordable housing and homelessness crises in this country.' The bill is seen as a rare bipartisan achievement in an election year, with both parties eager to show they are tackling the affordability crisis.
