The House of Representatives passed legislation that would cap institutional investor ownership of single-family homes at 350 units per entity, marking Congress's latest effort to address housing affordability concerns.

The End Hedge Fund Control of American Homes Act includes provisions for a 50 percent excise tax on any single-family home purchased by covered institutional investors after the law's enactment. The legislation also mandates a 10-year phase-down period for existing portfolios that exceed the 350-unit threshold.

The bill targets large-scale institutional investors, including hedge funds and private equity firms, that have increasingly purchased single-family homes in recent years. Supporters argue such investments have contributed to rising home prices and reduced homeownership opportunities for individual buyers.

Housing affordability has become a pressing national issue, with multiple factors affecting prospective homebuyers. Recent research indicates that family wealth plays a significant role in determining homeownership rates, even for individuals with well-paying jobs.

Meanwhile, some jurisdictions are exploring alternative approaches to reduce housing costs. Preapproved building plans have gained traction as a method to streamline the permitting process, potentially trimming weeks or months from construction timelines. Housing experts note that construction delays add costs that are ultimately passed on to buyers.

The House bill now moves to the Senate, where its prospects remain uncertain. The legislation represents one of several congressional proposals aimed at addressing housing supply and affordability challenges facing American families.