By Chinonyerem Emmanuel
California Democratic Rep. Ro Khanna on Friday reintroduced sweeping legislation aimed at curbing the growing influence of large institutional investors in the US housing market, an effort that now carries unexpected political momentum following a similar call from President Donald Trump.
Khanna’s move comes just days after Trump declared on Truth Social that he would take immediate steps to ban large institutional investors from buying more single-family homes, injecting populist energy into a long-simmering debate over housing affordability.
The overlap between the progressive Democrat’s proposal and the Republican president’s rhetoric has raised eyebrows on Capitol Hill and sparked speculation about a rare bipartisan opening on housing policy.
Trump’s remarks posted on Jan. 7 were part of a broader wave of populist economic messaging as he seeks to reassure voters anxious about rising costs ahead of the 2026 midterm elections.
Those concerns appear well founded politically; a recent Marist poll found that only 36 percent of Americans approve of Trump’s handling of the economy, while 57 percent disapprove a troubling signal for Republicans in Congress trying to defend razor-thin majorities in both the House and Senate.
Seizing on Trump’s comments, Khanna publicly challenged the president to back his rhetoric with action. In a statement to CNBC, Khanna framed the issue as a defining test of whether Trump is serious about confronting powerful financial interests.
“If President Trump is serious about taking on Wall Street landlords, Congress should pass my bill, and he should sign it into law,” Khanna said. “Homes should be owned by people, not wealthy corporate landlords who are buying up single-family homes and pushing the dream of homeownership out of reach for too many Americans.”
Although the full text of the legislation was not immediately available Khanna’s office said the proposal titled the Stop Wall Street Landlords Act would sharply limit the financial incentives that large institutional investors use to dominate the single-family housing market.
Specifically, the bill would prohibit those investors from benefiting from home-related tax breaks, including deductions for mortgage interest insurance and depreciation.
The legislation would also place new restrictions on federally backed housing institutions. Under the bill, agencies such as Fannie Mae and Freddie Mac would be barred from purchasing or backing mortgages on single-family homes bought by large institutional investors.
In a particularly aggressive provision, investors who sell single-family homes more than 18 months after the bill becomes law would face a real estate transfer tax equal to 100 percent of the home’s sale value.
Previous versions of the bill, including one introduced in late 2024, defined a large institutional investor as any individual or firm controlling more than 100 million dollars in assets. Khanna’s current proposal appears to retain that threshold.
So far the bill has attracted 13 cosponsors, all Democrats. Still, Khanna suggested that Trump’s rhetoric could pressure some House Republicans to break ranks and support the effort, especially those representing districts where housing affordability has become a political flashpoint.
In an interview with CNBC Khanna said he is open to working directly with Trump if the administration is willing to move beyond messaging and toward meaningful policy.
“If it’s actually going to help the working class, I’m willing to work with him,” Khanna said. “If he calls me up, I’ll help lead the bill.”
Trump is expected to further outline his housing and affordability agenda during remarks at the World Economic Forum in Davos on Wednesday. In a follow-up Truth Social post, the president said he plans to address institutional investment in housing as part of a broader package of proposals.
“I will discuss this topic, including further housing and affordability proposals and more, at my speech in Davos,” Trump wrote.
Whether that speech translates into legislative backing remains to be seen, but for now Khanna’s bill has found an unlikely tailwind from the White House.
Source: CNBC
Original article
Comments