The U.S. Senate passed a bipartisan affordable housing bill Monday by a vote of 85 to 5. The legislation limits the number of single-family homes that major investors can purchase and is aimed at increasing the national housing supply while reducing private equity's influence on the residential market.
The bill was reported by CNBC. Sen. Tim Scott, R-S.C., and Sen. Elizabeth Warren, D-Mass., the top Republican and Democrat on the Senate Banking Committee, led the effort along with Reps. French Hill, R-Ark., and Maxine Waters, D-Calif., who lead the House Financial Services Committee. The House is expected to vote on the bill later this week, and President Donald Trump has signaled support for the measure.
Scott spoke from the Senate floor ahead of the vote. "Housing prices are too darn high and housing supply too low. Rent is too high. Starter homes — too hard to find. And that American dream slips further and further away for far too many," he said.
The bill nearly collapsed during negotiations. Republicans debated provisions limiting institutional investors, and the House and Senate spent months haggling over competing versions. The House version was viewed as more friendly to Wall Street, while the Senate version included stricter limits on large investors. Lawmakers found a middle ground last week.
An earlier version of the bill would have required investors who own 350 units or more to sell any new units they build beyond that cap within seven years. Lawmakers on both sides worried that provision would discourage the construction of new housing. The final version keeps the 350-unit ownership cap but removes the seven-year sell-by requirement.
The U.S. Chamber of Commerce weighed in on the supply side of the debate. Neil Bradley, executive vice president, chief policy officer and head of strategic advocacy at the Chamber, said in a statement last week: "With America facing a shortage of over 4.7 million homes, expanding supply remains the most effective and sustainable way to improve affordability, support workforce mobility, and strengthen local economies." Bradley added that the package "would incentivize housing development by modernizing federal housing programs, reducing regulatory barriers, preserving residential and multifamily rental housing options, increasing pathways to homeownership, and encouraging much needed investment and new construction."
The legislation is moving through Congress as both parties position themselves ahead of the 2026 midterm elections, where Republicans are defending narrow majorities in both chambers. Bringing down housing costs has become a central issue for voters in both parties.
Despite the lopsided Senate vote, analysts cautioned that the bill is unlikely to produce quick results. According to a report by MarketWatch, analysts noted that the measure "will take time to meaningfully affect housing affordability and will not resolve voter frustration in that area."
The House vote is expected later this week.
