Consumer Alert: Following a workplace injury, avoid these most common mistakes

The legislation is backed by both Republicans and Democrats

By Mark Huffman of ConsumerAffairs

• Bipartisan housing bill moves closer to passage after House and Senate negotiators reached agreement on the 21st Century ROAD to Housing Act.

• Measure would largely bar large institutional investors from buying existing single-family homes, a provision supporters say would give families a better chance to purchase homes.

• Legislation also includes incentives to boost housing supply, including support for manufactured housing, streamlined regulations and grants for new development.

After the housing market crash of 2008, when millions of single-family homes went into foreclosure, hedge funds and other Wall Street entities began buying them. Some critics maintain that made it harder for consumers to buy these homes to live in.

Now, Congress appears ready to address that issue.

A bipartisan housing affordability bill that would largely prevent large institutional investors from buying existing single-family homes is on track for congressional approval after House and Senate leaders reached a compromise on the legislation. The measure has bipartisan support.

The measure, known as the 21st Century ROAD to Housing Act, is one of the most significant federal housing proposals in decades and is aimed at addressing a housing affordability crisis that has put homeownership out of reach for many Americans. The legislation combines efforts to increase housing supply with restrictions on large investment firms that purchase homes for rental portfolios.

Trump supports the bill

Under the agreement, large institutional investors would be prohibited from purchasing existing single-family homes, a policy backed by a bipartisan coalition of lawmakers and supported by President Donald Trump. Supporters argue that the rise of Wall Street-backed homebuyers has made it harder for families to compete in the housing market, particularly in fast-growing metropolitan areas.

"The deep-seated belief behind this legislation is that homes should be for families, not simply investment vehicles," Sen. Elizabeth Warren (D-Mass.), one of the bill's chief sponsors, said during Senate consideration of the measure.

The Senate approved its version of the bill in March by a vote of 89-10, reflecting broad bipartisan support. The legislation was sponsored by Warren and Sen. Tim Scott (R-S.C.), who have framed housing affordability as a national challenge that transcends party lines.

Measures to increase supply

In addition to the investor restrictions, the bill seeks to increase housing availability through a variety of supply-side measures. Provisions would streamline certain federal reviews for housing projects, reduce regulations affecting manufactured housing, encourage local governments to relax zoning restrictions and provide incentives for new residential construction.

Negotiators removed one of the Senate's most controversial provisions, which would have required some investors to sell newly built rental homes within seven years. The compromise was viewed as more acceptable to the real estate and homebuilding industries while preserving the core investor-purchase ban.

The legislation comes as home prices remain elevated and housing inventory remains tight. The median U.S. home price surpassed $400,000 in late 2025, fueling concerns among lawmakers that first-time buyers are increasingly being squeezed out of the market.

Not everyone agrees that restricting institutional investors will significantly improve affordability. Some housing economists note that large investors account for only a small share of the nation's housing stock and argue that the primary driver of high prices remains a shortage of homes. Critics also warn that limiting investor participation could reduce financing for new housing development.

However, supporters contend that the bill's combination of supply expansion and investor restrictions offers the best opportunity in years to address housing affordability.

Congressional leaders expect final votes on the compromise measure in the coming days, after which it would head to the president's desk for signature.