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California Democratic Representative Ro Khanna reintroduced a bill - aimed at preventing large corporate landlords from purchasing single-family homes.
This move comes in response to President Donald Trump's recent proposal to halt institutional investors from buying more homes. Trump expressed this idea in a post on Truth Social, emphasizing the need to protect homeownership for everyday Americans.
Trump's remarks are part of a broader strategy as he faces declining poll numbers. A recent Marist poll indicated that only 36% of Americans approve of Trump's handling of the economy, with 57% disapproving.
This dissatisfaction poses a challenge for Republican lawmakers as they prepare for the 2026 midterm elections, where maintaining their slim majorities in Congress is crucial.
Khanna's proposed legislation, the Stop Wall Street Landlords Act, includes several significant provisions. It would prohibit large institutional investors from benefiting from home-related tax breaks, such as mortgage interest deductions and depreciation deductions.
Additionally, the bill mandates that federal and government-backed agencies, like Fannie Mae and Freddie Mac, restrict large investors from purchasing mortgages on single-family homes.
Another notable aspect of the bill is the proposed 100% real estate transfer tax on institutional investors who sell single-family homes more than 18 months after the bill is enacted. This tax is designed to deter large corporations from dominating the housing market.
In prior versions of the bill, a large institutional investor was defined as an individual or firm with assets exceeding $100 million. As of now, Khanna has 13 Democratic cosponsors for his bill, indicating some level of support among his peers.
However, Trump's recent call to restrict large investors may encourage some Republican members in the House to join Khanna's effort.
In an interview with CNBC, Khanna expressed his willingness to work with Trump on legislation that benefits the working class.
He stated, "If he calls me up, I'll help lead the bill." This openness to collaboration could pave the way for bipartisan efforts to address housing affordability issues, a topic Trump plans to discuss at the World Economic Forum in Davos.
As the conversation around housing policy evolves, the impact of Khanna's bill and Trump's proposals on the housing market remains to be seen.
With both figures emphasizing the need for action against corporate landlords, the upcoming legislative sessions may focus more on protecting individual homebuyers and addressing affordability challenges in the housing sector.
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