The U.S. House of Representatives passed a significant housing affordability bill on Wednesday with an overwhelming 396-13 bipartisan vote. The legislation seeks to address the growing influence of institutional investors in the single-family housing market by prohibiting entities that own more than 350 homes from acquiring additional existing properties. However, the bill includes a strategic carve-out that permits these firms to continue developing new housing units, a move designed to boost overall supply.

The legislation represents a compromise between House and Senate versions, following months of negotiations. By removing a controversial requirement that would have forced large investors to sell off units built beyond the 350-home cap within seven years, the bill secured support from key sectors, including the rental and construction industries. This adjustment was pivotal in gaining backing from the White House, which had been working to reconcile the differing priorities of the two legislative chambers.

Despite the House’s decisive action, the bill’s future remains uncertain as it heads to the Senate. While proponents argue the bill strikes a necessary balance between market stability and housing production, some lawmakers remain critical. Critics, including Senator Bernie Moreno, have expressed concern that the bill does not go far enough to prioritize individual homeownership for young families, arguing that the focus should remain on selling homes rather than expanding the build-to-rent sector. Senate leadership has indicated that the chamber will review the updated legislation, though it remains to be seen if it can secure the 60 votes required to reach the President’s desk.