House Passes Bill to Lower Homebuyer Costs and Curb Private Equity

The U.S. House of Representatives passed a bill on June 24, 2026, designed to reduce costs for homebuyers and restrict the influence of private equity firms in the residential real estate market. The legislation now moves to the desk of President Donald Trump for final approval, according to House legislative records.

The bill targets the acquisition of single-family homes by institutional investors, a trend that critics argue drives up prices and reduces available inventory for individual buyers. By implementing new restrictions on private equity ownership, the House intends to shift market leverage back toward traditional homebuyers.

House Speaker Mike Johnson oversaw the final passage of the measure, which seeks to address the affordability crisis in the housing sector. The bill focuses on two primary mechanisms: lowering the entry cost for first-time buyers and curbing the scale of corporate portfolios in residential neighborhoods.

According to the legislative text, the bill introduces measures to limit how many single-family rental units a single private equity firm can own before facing higher tax penalties or stricter regulatory oversight. This approach is intended to prevent large-scale investors from outbidding families with all-cash offers.

The legislation also includes provisions aimed at lowering costs for homebuyers through revised lending standards and targeted incentives. These measures are designed to increase the accessibility of mortgages for those who have been priced out of the market by institutional competition.

How does the bill target private equity?

The bill targets institutional investors by creating a regulatory ceiling on the volume of residential properties private equity firms can control. According to the House bill, these restrictions aim to stop the consolidation of neighborhoods into corporate-owned rental portfolios.

By limiting the ability of these firms to scale their holdings, the House intends to increase the number of homes available for sale rather than for rent. The bill suggests that reducing corporate dominance in the housing market will naturally lower the competitive bidding environment for individual buyers.

What happens next for the affordable housing bill?

The bill has completed its passage through the House and is now awaiting a signature from President Donald Trump. Once signed, the provisions regarding private equity restrictions and homebuyer cost reductions will move toward implementation.

The final outcome depends on the executive’s decision to sign the bill into law or exercise a veto. If signed, the legislation will represent a significant shift in federal policy regarding the intersection of Wall Street capital and residential real estate.