A new federal law restricting large private equity firms from purchasing additional single-family homes marks the biggest policy challenge yet to institutional investors' growing role in the U.S. housing market.
The legislation, part of the bipartisan 21st Century ROAD to Housing Act, became law after President Donald Trump neither signed nor vetoed the bill within the constitutional 10-day window while Congress remained in session, CBS News reported.
Among its most closely watched provisions is one championed by Sen.
Raphael Warnock (D-Ga.), which prohibits large private equity firms from purchasing additional single-family homes.
The broader package also includes measures to increase housing supply, modernize the appraisal process, expand rural housing programs and encourage local governments to accelerate residential construction.
