Are Large Companies Restricted from Buying Homes? Trump and Democratic Housing Policy Disagreements Surface
On February 24, news reports indicated that Democratic members of Congress introduced a new bill to counter President Trump’s proposal to restrict institutional investors from holding housing. Senator Elizabeth Warren of Massachusetts and Senator Jeff Merkley of Oregon, along with 14 other Democratic senators, jointly submitted the bill, which aims to eliminate certain tax benefits for large corporations, prohibit companies owning more than 50 single-family homes used for rental from claiming depreciation and mortgage interest deductions, and restrict their access to federal-backed loans. The bill also provides temporary exemptions for companies building new multi-family housing or renovating existing non-residential properties.
Meanwhile, the Trump administration is promoting its own housing restriction plan, proposing to ban institutional investors owning over 100 single-family homes from purchasing any new homes, with certain conditions allowing companies to increase their housing holdings to receive exemptions. This proposal aims to limit large corporations’ control over the housing market but differs significantly from the Democratic plan in scope and tax provisions.
Currently, the U.S. Congress is advancing legislation to increase housing supply and improve affordability. The House of Representatives earlier this month passed a broadly supported bipartisan bill, and the Senate has also pushed a similar measure last year. Lawmakers from both parties are working to consolidate these proposals into a final legislative package to balance market supply, affordability, and institutional investor participation.
Analysts note that this legislative contest will directly impact the structure of the U.S. real estate market and investor behavior. The Democratic bill focuses on tax and compliance restrictions, while Trump’s proposal emphasizes quantity control and purchase limits. The combination of these approaches could impose multiple constraints on institutional ownership of housing. Market observers will closely monitor the final legislation and its potential effects on housing prices and the rental market.