
Hawley and Merkley Advance Bill to Bar Large Funds From Buying Single‑Family Homes
Context and chronology
A bipartisan Senate measure announced this week would prohibit large investment pools from acquiring detached houses, condos and townhomes intended for sale to individual buyers; the statutory cutoff is funds with assets above $150,000,000. Sponsors framed the move as restoring buying power to typical households after years of deep‑pocketed firms entered for profit‑driven rental conversions. The lead sponsors are Senator Josh Hawley and Senator Jeff Merkley (Mr. Hawley and Mr. Merkley on second reference). The bill amends federal antitrust law and routes enforcement to the U.S. Department of Justice Antitrust Division, signaling civil litigation as the primary compliance tool rather than a new licensing regime.
The Hawley‑Merkley proposal arrives alongside a broader policy push: the White House has issued executive guidance aimed at discouraging large‑scale investor purchases, and other congressional Democrats are advancing a complementary legislative track that would tighten tax preferences for large single‑family rental portfolios. Some outlets describe the White House action as having been driven into public view by Mr. Trump; others report the directive in neutral terms. Together, these parallel actions create three distinct policy levers — antitrust litigation, executive agency guidance, and tax‑code changes — that could operate in concert or separately depending on political and judicial outcomes.
Market data cited by analysts show institutional owners hold roughly 3.8% of single‑family rentals nationally but concentrate unevenly, with holdings above 28% in Atlanta and near 20% in Charlotte. Those localized concentrations are likely enforcement and messaging targets. Public polling indicates strong voter frustration about homebuying affordability — a dynamic lawmakers are leveraging to build support across parties in an election year.
Policy architects caution that demand‑side restraints are not a substitute for expanded supply. Banks and analysts, including Goldman Sachs, estimate a multi‑million unit shortfall in new construction; absent a material increase in housing starts, any price relief from limiting investor purchases will be partial and uneven. Still, in markets with outsized institutional footprints, limiting large buyers could lengthen listing times for some sellers and restore near‑term bidding power to small, owner‑occupant purchasers.
Operationally, firms that scaled portfolios to buy detached homes will face immediate dealflow disruptions: acquisition pipelines may be paused, underwriting will incorporate regulatory risk premiums, and capital could migrate toward multifamily, commercial property, or build‑to‑rent projects. Lenders and investors will reprice legal and political risk into cap rates and securitization structures. For municipal and regional markets that relied on deep‑pocket buyers, sellers may see demand narrow and listing times extend; conversely, small buyers could regain leverage in targeted zip codes.
Legal experts expect swift constitutional and preemption challenges, which will thrust courts into defining the boundary between antitrust enforcement and property markets. The statutory approach — classifying categories of buyers as unlawful rather than policing individual transactions case‑by‑case — accelerates litigation and raises enforceability questions. Financial markets will monitor whether the antitrust route, tax changes, or executive guidance prove the durable mechanism to reshape investor behavior.
Read Our Expert Analysis
Create an account or login for free to unlock our expert analysis and key takeaways for this development.
By continuing, you agree to receive marketing communications and our weekly newsletter. You can opt-out at any time.
Recommended for you

Trump Proposal to Block Large Investors from Buying Single‑Family Homes Raises Market Risk
President Trump's proposal to bar large institutional buyers and a parallel Senate bill increase regulatory risk for residential investors and complicate capital flows into single‑family rentals. Policymakers will face pressure to pair restrictions with supply-side measures because ownership concentration alone cannot close the housing shortfall.
Warren and Hawley Push to Break Up Vertically Integrated Health Giants
Two senators from opposite sides of the aisle introduced legislation to bar large health firms from owning both care providers and entities that set prices, aiming to reduce conflicts of interest and boost competition. The bill would empower federal agencies to enforce divestitures and levy penalties, setting up a major legal and political fight with insurers, PBMs and pharmacy chains.

HUD proposes ban on mixed‑status families living in federal housing
The Department of Housing and Urban Development has proposed a rule that would bar households containing undocumented members from occupying federally supported rental units and require local housing agencies to report ineligible individuals to immigration authorities. Public comments are open for 60 days; analyses project tens of thousands could lose housing, and legal and fiscal battles are likely if the rule advances.

U.S. Plan to Sell Stakes in Fannie Mae and Freddie Mac Heightens Market and Political Risk
The Biden-era conservatorship exit being pursued by the Trump administration and FHFA Director Bill Pulte would place the government’s two mortgage backstops into partial private ownership, a move that could shift billions of dollars of value and change mortgage pricing for American homebuyers. Experts warn the proposal is premature, legally fraught and could create large windfalls for pre‑2008 shareholders and well‑connected investors while leaving taxpayers exposed if the end state and backstop arrangements aren’t clearly defined.
Senators’ personal stock trades tied to committee work revive drive to ban lawmakers from trading
A review of congressional financial disclosures found at least ten senators executed stock transactions last year in industries under the jurisdiction of their committees, reigniting public and watchdog pressure to prohibit members from owning individual equities. Lawmakers defend use of brokers and blind trusts, but bipartisan legislation faces fractious negotiations and competing proposals that may dilute meaningful reform.

Microsoft Backs State Bill to Open Commercial Land for Housing, Lays Out Policy Playbook
Microsoft is publicly supporting SB 6026 to make residential development the default on qualifying commercial parcels and released a report arguing that systemic policy fixes are required to address Washington’s housing shortage. The company pairs that policy push with data from its $750M housing effort and a four-part agenda: more land, faster permitting, lower building costs, and sustained public-private partnerships, including AI tools for permitting.

U.S. Homebuyers Should Expect Only Modest Relief as Policy Moves Clash with Larger Market Forces
Federal actions — including a Fed leadership signal toward easing and a presidential order for Fannie Mae and Freddie Mac to buy roughly $200 billion of mortgage bonds — may shave a few basis points from borrowing costs. But a prior round of easing, a Fed policy pause, the Treasury yield outlook and persistent housing supply shortages suggest any drop in mortgage rates will be modest and uneven.
House Republicans Advance Bills That Undermine Appliance Efficiency
The House passed H.R. 4626 and H.R. 4758, moves that reduce the federal ability to tighten appliance standards and would remove key residential rebate funding. These actions raise near-term risks to household energy costs, manufacturing innovation incentives, and grid stress tied to inefficient devices.