Senate housing bill that takes aim at institutional investors may do little for homebuyers — and could even hurt renters | CNN Business

Banning mega investors from buying single-family homes has accomplished a rare feat in Washington: bipartisan consensus. Many housing advocates blamed Wall Street firms buying up homes for a post-pandemic surge in housing costs. Now, with an executive order from President Donald Trump and a Senate bill advancing the idea, a ban may soon become reality. Last month, the Senate passed a bill 89-10 aimed at improving housing affordability, following the House of Representatives’ passage of a narrower version earlier this year. The Senate’s version, backed by Republican Sen. Tim Scott and Democratic Sen. Elizabeth Warren, is designed to spur more home building and lower costs. That includes a restriction on large institutional investors, defined as those owning 350 or more single-family homes, buying more single-family properties. But banning mega investors from buying single-family homes may do little to lower prices, some economists say. Instead, the ban could reduce single-family rental options in neighborhoods where many people cannot afford to buy. “Institutional investors make for a convenient boogeyman, but they don’t address the real issue,” said Jay Parsons, a rental