For California residents struggling to purchase a home in one of the nation’s most competitive real estate markets, a new bipartisan federal bill could signal meaningful change. Senators Josh Hawley (R-MO) and Jeff Merkley (D-OR) have introduced the Homes for American Families Act, legislation designed to ban large investment firms from purchasing single-family homes.
Who This Legislation Affects
If you’re a California resident trying to buy your first home, competing against cash offers from large corporations, or worried about your children’s ability to achieve homeownership, this proposed legislation directly addresses your concerns. The bill specifically targets the practice of deep-pocketed institutional investors outbidding individual families in the residential real estate market.
What the Homes for American Families Act Would Do
The proposed legislation would amend the Sherman Antitrust Act of 1890 to prohibit investment funds with over $150 million in assets from purchasing single-family homes, condominiums, or townhouses. Key provisions include:
Why This Matters for California Families
California’s housing market presents unique challenges. With some of the highest home prices in the nation and intense competition for available properties, families often find themselves unable to compete with institutional investors who can pay all cash and close quickly.
Senator Hawley stated: “Families deserve to be able to buy their own homes and achieve the American dream without competing with big investment companies that irrevocably drive up housing prices”. Senator Merkley added that with bipartisan support, lawmakers can “finally crack down on billionaire corporations gobbling up American homes”.
The Scale of Institutional Investment in Housing
According to the Urban Institute’s 2023 analysis, large institutional investors own 3.8% of all single-family rental homes nationwide. However, regional concentration is significantly higher:
Current Market Conditions Making Homeownership Difficult
Federal Reserve data reveals that homebuyers now need to earn 43% more than the median worker to afford a typical home. A recent CBS News poll found that 83% of Americans say buying a house is harder now than it was for previous generations.
The legislation responds to real-world stories like that of Raysall Wiggins, a mother of two who placed bids on 20 homes and lost every single bid to investment firms that paid all cash and converted the properties to rentals.
Related Federal Action
This bill follows President Trump’s executive order from January 2026, which directed federal agencies to avoid approving or facilitating the sale of most single-family homes to large institutional investors. The President called on lawmakers during his State of the Union address to make this action permanent.
Additionally, Senators Merkley and Elizabeth Warren introduced companion legislation that would eliminate tax deductions for depreciation and mortgage interest for owners with 50 or more homes.
How This Could Impact Your Estate Planning
For California residents managing family assets or planning their estates, these legislative changes may affect:
Protecting Your Real Estate Assets
Whether you’re concerned about how federal housing legislation might affect your property holdings, or you’re navigating the complex California probate system after inheriting real estate, experienced legal guidance is essential. California Probate and Trust, PC specializes in helping California residents protect their family assets through comprehensive estate planning and trust administration services.
Schedule a Consultation with California Probate and Trust, PC
If you own California real estate or are managing inherited property, our experienced attorneys can help you develop a comprehensive estate plan that protects your assets and your family’s future. Contact California Probate and Trust, PC to schedule a consultation and discuss how changing housing legislation may impact your estate planning strategy.
Source: CBS News
Legal Disclaimer
This article is provided for informational purposes only and does not constitute legal advice. The information presented here is current as of the publication date but may change as legislation evolves. Estate planning, probate, and real estate law are complex areas that vary significantly based on individual circumstances. You should not act or rely on any information in this article without seeking the advice of a qualified attorney licensed in your jurisdiction. California Probate and Trust, PC makes no representations or warranties regarding the accuracy, completeness, or timeliness of the information contained in this article. Reading this article does not create an attorney-client relationship.