The U.S. House of Representatives passed a sweeping housing bill backed by President Donald Trump, with lawmakers voting 396-13 in favor of the bipartisan measure aimed at boosting housing supply and homeownership. The bill now moves to the Senate, where it faces an uncertain future due to required approval by a 60-vote threshold and potential frustration over modifications made by the House to the Senate's original version [1].
A key change in the House bill was the removal of a controversial Senate provision that would have required single-family homes owned by large investors for rental purposes to be sold off within seven years. Critics argued that this measure could reduce housing supply and negatively impact the build-to-rent industry, which provides rental options for Americans unable to afford homeownership [1]. However, the House bill preserved a ban on large institutional investors from purchasing new single-family homes, a provision supported by both the Trump administration and progressives like Sen. Elizabeth Warren, D-Mass. This measure is intended to help individual homebuyers compete with well-funded investors, though large institutional investors currently own only a small portion of the nation's housing stock [1].
According to a May survey commissioned by the Bipartisan Policy Center, 70% of voters support a ban on large investors owning more than 350 homes from purchasing additional properties, though support decreases when respondents are informed that such a ban could reduce the supply of rental homes [1]. House Financial Services Chairman French Hill, R-Ark., stated that the bill prioritizes American families by expanding homeownership, enhancing affordability, reducing burdensome regulations, and increasing housing supply nationwide. He emphasized that the bill delivers on President Trump’s call to limit institutional investors from competing with American homebuyers [1].
The White House has indicated that President Trump would sign the House's amended 21st Century ROAD to Housing Act into law if it passes the Senate. Despite broad bipartisan support, the bill faced opposition from 13 conservative lawmakers, primarily members of the House Freedom Caucus, due to concerns over an unrelated provision temporarily banning central bank digital currencies (CBDC). These lawmakers argued that the language could lead to unchecked financial surveillance [1].
CONCLUSION
The House's passage of the Trump-backed housing bill marks a significant step toward addressing housing affordability and supply, with strong bipartisan support. However, the bill's future in the Senate remains uncertain due to procedural hurdles and disagreements over key provisions. Market participants will be watching closely as the legislation advances, given its potential impact on institutional investors and the broader housing market.