Proposed rule would bar large institutional investors from buying single-family homes

A proposed regulation implementing a new law would generally bar large institutional investors from buying single-family homes starting Jan. 7, 2027, covering entities that control at least 350 such homes. The public will have 30 days to comment.

A draft regulation to implement a law restricting large institutional investors from purchasing single-family homes was released on Thursday. Under the proposal, large institutional investors would generally be barred from buying, or signing contracts to buy, single-family homes from Jan. 7, 2027, except for transactions covered by exemptions in the law.

Several criteria would be used to define a large institutional investor, including direct or indirect investment control over at least 350 single-family homes. Certain purchases, such as homes built to rent, renovation programs and programs that support homeownership, could qualify for exemptions.

Treasury Secretary Scott Bessent

The public will have 30 days to submit comments after the proposal is published in the Federal Register.

Treasury Secretary Scott Bessent said the administration of President Donald Trump continues to open the way for millions of young and working families to own an affordable home. He said the department aims to increase housing supply and limit the role of large institutional investors in the market, giving American families a fair chance to buy a home while supporting a strong and stable housing market.