The Bipartisan Housing Law Aims to Give Families a Better Chance to Compete Against Corporate Investors in Georgia and Across the Country
U.S. Sen. Raphael Warnock’s effort to limit large corporate investors from purchasing single-family homes has become federal law, delivering a major victory in his campaign to make homeownership more accessible.
The Georgia Democrat’s provision was included in the bipartisan 21st Century ROAD to Housing Act, which became law Saturday after President Donald Trump allowed the constitutionally required 10-day period to expire without signing or vetoing the legislation.
“I hear from Georgians across the state who have been clamoring for action from Washington on the affordable housing crisis, and this legislation is proof that when we center the people instead of the politics, we can get good policy done,” Warnock said in a statement.
Raphael Warnock Housing Law Targets Large Corporate Buyers
The law does not prohibit every company or landlord from buying a house. It prevents corporations that already own more than 350 single-family homes from purchasing additional existing homes.
Companies that violate the restriction could face a penalty of at least $1 million or three times the purchase price of the property, whichever amount is greater. The limitation generally applies to existing homes rather than newly constructed properties, preserving an incentive for investors to help finance additional housing development.
Warnock has argued that large corporate buyers can use cash offers and their financial resources to outbid families, particularly first-time homebuyers searching for affordable starter homes.
“In Atlanta, private equity’s greed is squeezing first-time homebuyers out of the market and pushing the American Dream further out of reach,” Warnock said earlier this year while promoting the legislation. “It’s time Congress did something about it.”
Corporate ownership is particularly concentrated in the Atlanta housing market. Wall Street-backed firms own approximately 72,000 homes across metro Atlanta, according to information released by Warnock’s office in April.
Warnock has said those holdings represent roughly 30% of the region’s single-family rental housing supply, creating additional pressure for residents trying to purchase homes in neighborhoods where large investors have become major players.
Housing Package Includes Broader Affordability Measures
The 21st Century ROAD to Housing Act includes dozens of provisions intended to expand the country’s housing supply and address affordability.
The legislation supports rural housing programs, encourages local governments to permit and construct more homes and establishes programs to convert vacant commercial buildings into affordable housing. It also expands support for factory-built homes, veterans housing and communities working to increase residential development.
The package also incorporates Warnock’s Appraisal Modernization Act, which seeks to improve fairness and accountability in the home appraisal process.
The Senate previously approved the housing package by an 89-10 vote, reflecting broad bipartisan support for addressing the nation’s shortage of affordable homes.
Trump had publicly supported restricting Wall Street purchases of single-family homes and issued an executive order directing federal agencies to prevent large institutional investors from using government-backed programs to outbid individual buyers.
However, the president canceled a planned signing ceremony for the congressional legislation in June and ultimately allowed the bill to become law without his signature.
Housing advocates have long argued that corporate investors reduce the number of homes available to individual buyers and contribute to higher rents in markets where their ownership is heavily concentrated. Some housing analysts, however, maintain that the broader national housing shortage remains the primary cause of high prices.
Warnock acknowledged that the new restriction will not resolve the housing affordability crisis by itself.
“My bill is an important first step in addressing this issue, but there is so much more work that needs to be done,” he said. “We must remain focused on delivering for the people every single day.”
The legislation represents one of Warnock’s most significant housing policy victories and establishes the first federal limit of its kind on additional single-family home purchases by the nation’s largest corporate investors.
