By Gloria Ogbonna
In a rare show of bipartisan cooperation, Sens. Josh Hawley (R-MO) and Jeff Merkley (D-OR) have introduced new legislation aimed at stopping large Wall Street firms from purchasing single-family homes across the United States.
The proposed bill, titled the Homes for American Families Act, seeks to protect everyday Americans from competing with powerful institutional investors in the increasingly challenging housing market.
The announcement comes shortly after President Donald Trump used his State of the Union address to urge Congress to codify his recent executive order that restricts large investment firms from buying up single-family homes.
Trump framed the issue as a direct threat to the American dream, arguing that homeownership has become increasingly out of reach for working families due to aggressive corporate purchasing practices.
Under the Homes for American Families Act, large institutional investors would be prohibited from acquiring single-family homes, townhouses, and condominiums.
Lawmakers backing the measure say Wall Street firms have taken advantage of the nation’s housing shortage by converting homes into rental properties, driving up prices and limiting supply for prospective homeowners.
“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. He emphasized that families should not have to compete with billion-dollar corporations offering cash payments and waiving inspections.
“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 added, calling for a permanent ban on such purchases.
In addition to the new legislation, Hawley and Merkley have updated their earlier proposal, the HOPE for Homeownership Act. The revised bill would create incentives for hedge funds and large investors to divest their current holdings of single-family homes, gradually returning those properties to the market for individual buyers.
Merkley echoed similar concerns, stressing that homes should serve as places for families to live—not as profit centers for hedge funds. “As corporate investors invade the housing market nationwide, we need action to protect hardworking Americans achieving the dream of homeownership,” he said.
Merkley pointed to growing bipartisan support and expressed readiness to work with the White House and lawmakers from both parties to advance the legislation.
During his State of the Union speech, Trump highlighted the story of Rachel Wiggins, a Houston mother of two who reportedly lost bids on 20 homes to large investment firms that paid cash and waived inspections. According to Trump, the properties were quickly converted into rentals, leaving families like Wiggins’ unable to compete.
“Another pillar of the American dream that has been under attack has been home ownership,” Trump said. He described signing an executive order aimed at banning large Wall Street investment firms from purchasing thousands of single-family homes and called on Congress to make the ban permanent.
“We want homes for people, not for corporations,” Trump declared, arguing that corporations are already thriving while families struggle to secure stable housing.
The issue appeared to strike a chord across party lines. While Republicans strongly applauded the proposal, some progressive Democrats—including Sen. Elizabeth Warren (D-MA)—also stood in support during the address, signaling that housing affordability may become a key bipartisan focus in the months ahead.
As housing prices remain elevated in many parts of the country, the debate over institutional investors’ role in the market is intensifying. Supporters of the legislation argue that curbing corporate ownership could free up inventory, stabilize prices, and restore opportunity for first-time buyers.
Whether Congress ultimately enacts a permanent ban remains to be seen, but momentum behind the issue appears to be building.
Source Breitbart