American Family Housing Act
- Sponsor
- Rep. Miller, Mary E. [R-IL-15]
- Committees
- Financial Services Committee (primary)
- Last action
- Jan 21, 2026
Bottom line
The bill aims to reduce institutional ownership of single-family homes by preventing large investment firms from acquiring them, thereby potentially increasing housing affordability and availability for individual homebuyers.
What it actually does
This bill amends the Investment Company Act of 1940 to prohibit large-scale companies, defined as registered investment companies or private funds with over $100 billion in assets under management, from purchasing single-family residences. It also restricts these companies from acquiring more than 49% of the equity securities of an issuer that holds more than 100 single-family residences. These prohibitions would take effect 100 days after the bill's enactment.
Proponents argue
Proponents argue that large institutional investors have contributed significantly to rising housing costs and reduced homeownership opportunities for families by purchasing vast numbers of single-family homes, often outbidding individual buyers. This bill seeks to level the playing field, making homeownership more accessible and affordable for American families by removing a major source of institutional competition.
Opponents contend
Opponents might argue that restricting institutional investment could reduce liquidity in the housing market, potentially hindering new housing development or the efficient allocation of housing stock. They might also contend that institutional investors provide valuable rental housing options and professional property management, and that their impact on overall housing affordability is overstated compared to other market factors like supply shortages and zoning restrictions.
The bill is very short and can be read quickly, allowing ample time for comprehensive evaluation.
Section 2, amending the Investment Company Act of 1940 by inserting new Section 12A.
Prohibition on Large-Scale Companies Purchasing Single Family Residences
This provision establishes that, 100 days after the bill's enactment, investment companies or private funds managing over $100 billion in assets are prohibited from buying single-family homes, including from the Federal Government. Additionally, these large-scale companies cannot purchase more than 49% of the equity in any company that owns over 100 single-family residences. A single-family residence is defined as a detached dwelling unit for one household, excluding condominiums or cooperative housing units.
Supporters argue
Supporters argue this provision directly addresses the issue of institutional investors driving up housing prices, making homeownership unattainable for many families. By removing these large players from the market, it is expected to make homeownership more accessible and affordable for individual buyers, fostering community stability and wealth building through homeownership.
Critics contend
Critics might contend that this restriction could lead to unintended consequences, such as reducing the supply of quality rental housing managed by professional entities or discouraging investment in new housing development. They may also argue that the $100 billion AUM threshold is arbitrary and could disproportionately affect certain types of funds, potentially distorting capital markets.
Tradeoffs
The bill balances the goal of increasing homeownership opportunities for individuals against potential impacts on housing market liquidity, investment in rental properties, and the broader financial markets. It also creates a tension between market efficiency and social equity in housing access.