Affordable Housing and Homeownership Protection Act of 2026

Summary

The Affordable Housing and Homeownership Protection Act of 2026 is a bill introduced in the U.S. Senate that aims to address the issue of large investors purchasing single-family homes by imposing a tax on such purchases. The key provisions of the bill include:

Purpose

• The main goal of the bill is to make home ownership more accessible and affordable for individual buyers by discouraging large-scale investor purchases of single-family homes.

Key Provisions

• Imposes a tax on the purchase of single-family homes by "covered investors" - defined as those owning more than 15 such homes:
  • Medium-sized investors (16-25 homes) - 1% tax
  • Large investors (26-100 homes) - 3% tax
  • Giant investors (more than 100 homes) - 5% tax
• Excludes new construction homes built by the investor from the tax, unless they are replacing a previously purchased home.
• Includes exceptions for certain non-profit and government entities focused on affordable housing.
• Requires covered investors to report annually on the number of single-family homes they own and purchase.

Impact

• Intended to make it more difficult and costly for large investors to purchase single-family homes, freeing up more inventory for individual homebuyers.
• Could increase the supply and affordability of single-family homes in the housing market.
• May impact the investment strategies and business models of large real estate investment firms and landlords.

The bill was introduced on January 30, 2026 and referred to the Senate Committee on Finance for consideration.