US Treasury Proposes Ban on Institutional Single-Family Home Purchases
The US Treasury is proposing a federal rule to prohibit institutional investors from purchasing single-family homes starting January 7, 2027.
The United States Department of the Treasury is issuing a proposed federal rule to prohibit institutional investors from purchasing single-family homes beginning January 7, 2027. Implementing the ROAD to Housing Act, the rule defines institutional investors as entities owning 350 or more homes. The measure aims to increase housing affordability for families by limiting the influence of large investors, though it provides exceptions for homeownership programs and build-to-rent or renovate-to-rent initiatives.
President Donald Trump initially delayed signing the ROAD to Housing Act to pressure Congress regarding the SAVE America Act, but the legislation eventually became law without a veto. The proposed rule includes civil penalties for violations and will undergo a 30-day public comment period.
Treasury Secretary Scott Bessent stated the administration is working to ensure American families have a fair shot at purchasing homes by increasing supply and limiting the role of institutional investors. Conversely, investment firms such as Blackstone argue that institutional ownership constitutes a negligible fraction of the housing supply and that government-impeded construction is the primary cause of high prices.
