Treasury Proposes Rules to Limit Large Investors in Home Purchases

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The U.S. Department of the Treasury has proposed new regulations to implement the 21st Century ROAD to Housing Act, aiming to make homeownership more accessible for Americans by restricting large institutional investors from purchasing single-family homes. The proposal seeks to codify the requirements outlined in an executive order signed by President Donald Trump in January 2026.

Treasury Secretary Scott Bessent emphasized the administration’s commitment to restoring affordable homeownership for millions of families. ‘Treasury is working to ensure American families and workers have a fair shot at purchasing homes in their communities by increasing housing supply and limiting large institutional investors’ role in the market,’ Bessent stated.

The proposed rules define a ‘large institutional investor’ as an entity engaged in the business of investing in, owning, renting, managing, or holding single-family homes and having direct or indirect investment control over at least 350 such homes. Under the new framework, these investors may not enter into a contract to purchase a single-family home unless the purchase qualifies as an ‘excepted purchase’ under the ROAD to Housing Act.

The act includes exceptions for purchases made under build-to-rent programs, renovate-to-rent programs, homeownership programs, and initiatives to boost homeownership. These carveouts aim to support programs that align with the administration’s goals of increasing housing supply and affordability.

The Notice of Proposed Rulemaking (NPRM) outlines a framework for the Treasury to carry out the provisions of the ROAD to Housing Act. The new regulations are set to take effect on January 7, 2027, marking a significant shift in the regulation of real estate investment and homeownership in the United States.

Source: OANN

Written by

Connor Davis