Rival bills propose different limits on investors to make homebuying more affordable.

Two rival bills would curb institutional purchases of single-family homes: the American Homeownership Act would remove tax breaks for firms owning more than 50 homes, while the Homes for American Families Act would bar investment firms with over $150 million in assets from buying such properties.

Lawmakers from both parties are advancing rival bills to curb institutional purchases of single-family homes as the U.S. faces a housing affordability crunch. One proposal would remove tax advantages for large real estate investors, and the other would ban certain big firms from buying single-family properties. President Trump reiterated his call to limit institutional buyers during the State of the Union. Some housing experts say years of underbuilding remain a central cause of rising housing costs. Key details: - The American Homeownership Act was introduced by Democratic Sens. Elizabeth Warren and Jeff Merkley, with 16 other Democratic senators, and would eliminate tax deductions for corporations that own more than 50 single-family homes. - That bill would also block such investors from federally backed mortgages and from buying foreclosed homes sold by federal agencies, and would direct tax savings toward new home construction and homebuying programs. - The Homes for American Families Act, introduced by Sen. Jeff Merkley and Sen. Josh Hawley, would amend the Sherman Antitrust Act to ban investment companies with assets over $150 million from buying single-family homes, townhouses, and condominiums, with enforcement by the Justice Department’s antitrust division. - Investment firms are reported to own about 3.8% of single-family rental properties nationwide, with investor shares above 20% in some cities such as Atlanta and Jacksonville, according to a 2023 Urban Institute analysis. - Some lawmakers argue limiting investor purchases could reduce competition from deep-pocketed buyers in local markets where investor ownership is high. - Housing experts cited in the report say that boosting new construction of single-family homes and apartments would more directly address the broader supply shortage driving affordability problems. Summary: Both bills offer contrasting tools to limit institutional investor activity and could change market dynamics in places with high investor ownership. Congressional action and detailed enforcement plans are undetermined at this time.