WASHINGTON (dpa-AFX) - The U.S. Department of the Treasury has proposed regulations to implement Section 1001 of the ROAD to Housing Act, which restricts large institutional investors from purchasing single-family homes, codifying key requirements of President Trump's Executive Order 14376, Stopping Wall Street from Competing with Main Street Homebuyers.
'Under President Trump, this Administration continues to restore the path to affordable homeownership for millions of young and working families,' said Treasury Secretary Scott Bessent. 'Treasury is working to ensure American families and workers have a fair shot at purchasing homes in their communities by increasing housing supply and limiting large institutional investors' role in the market, while supporting a strong, stable housing market and avoiding unnecessary disruption.'
As per the proposed rule, from January 7, 2027, a large institutional investor is banned from purchasing or entering into a contract to purchase a single-family home unless it qualifies as an 'excepted purchase' under the ROAD to Housing Act. The ROAD to Housing Act defines a large institutional investor as an entity engaged in the business of investing in, owning, renting, managing, or holding single-family homes and has direct or indirect investment control over at least 350 such homes.
The ROAD to Housing Act permits several categories of excepted purchases, including purchases made pursuant to build-to-rent programs, renovate-to-rent programs, homeownership programs, and programs to boost homeownership.
The proposed regulations are published in the Federal Register. The Treasury urged the public to submit comments in response to the NPRM within 30 days.
Also on Thursday, President Donald Trump signed an Executive Order to lower the costs of single-family homeownership and mortgages.
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