U.S. Treasury Proposes Rule to Restrict Institutional Purchases of Single-Family Homes
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The Treasury Department announced a proposed rule that would prohibit institutional investors from buying most single-family houses beginning in 2027, with exemptions for certain rental and homeownership programs.
The U.S. Treasury Department said on Thursday that it will issue a proposed federal rule to implement provisions of the ROAD to Housing Act aimed at limiting institutional investors’ purchases of single-family homes. Under the draft regulations, investors would be barred from buying such properties starting Jan. 7, 2027, except for transactions classified as “excepted purchases,” including build-to-rent, renovate-to-rent and certain homeownership programs.
"Under President Trump, this Administration continues to restore the path to affordable homeownership for millions of young and working families," Treasury Secretary Scott Bessent said in a statement.
"Treasury is working to ensure American families and workers have a fair shot at purchasing homes in their communities by increasing housing supply and limiting large institutional investors’ role in the market, while supporting a strong, stable housing market and avoiding unnecessary disruption," Bessent added.
The ROAD to Housing Act, passed by Congress and enacted without a presidential signature, defines institutional investors as entities that own 350 homes or more. The rule would also establish standards for build-to-rent programs, provide safe-harbor provisions for renovate-to-rent projects that bring homes up to code, and set civil penalties for prohibited purchases. A 30-day public comment period will follow the rule’s publication.
Critics have long argued that large investment firms buying single-family homes contribute to rising prices, a concern echoed by both right- and left-leaning populists.