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Sens. Josh Hawley and Jeff Merkley announced Thursday that they are introducing the Homes for American Families Act, bipartisan legislation aimed at preventing large institutional investors from purchasing single-family homes.
The proposal would prohibit major Wall Street firms and hedge funds from buying single-family houses, townhomes and condominiums. It follows remarks by President Donald Trump during his State of the Union address this week, in which he urged Congress to codify his executive order restricting such purchases.
“Wall Street has exploited the American housing crisis, turning the nation’s housing stock into a portfolio of rental properties,” Hawley said in a statement. “Families deserve to be able to buy their own homes and achieve the American dream without competing with big investment companies that irrevocably drive up housing prices.”
Hawley and Merkley also said they have updated separate legislation, known as the HOPE for Homeownership Act, to create incentives for large investment firms to divest from single-family home holdings.
“Houses in our communities should be homes for families, not profit centers for hedge funds,” Merkley said. “As corporate investors invade the housing market nationwide, we need action to protect hardworking Americans achieving the dream of homeownership.”
During his address to Congress, President Trump framed the issue as central to restoring access to homeownership. He highlighted the story of a Houston mother who, he said, lost out on 20 home bids to investment firms that paid cash and converted properties into rentals.
“Another pillar of the American dream that has been under attack has been home ownership,” the president said. He called on lawmakers to make his executive order permanent, adding that homes should be “for people, not for corporations.”
The housing proposal drew applause from Republicans and some Democrats, including Sen. Elizabeth Warren, reflecting rare bipartisan agreement on concerns about the corporate ownership of residential housing.
