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HR 7186

American Family Housing Act

119th Congress Introduced by Tom Barrett and 6 co-sponsors

Prohibits large-scale investment firms with over $100B AUM from directly buying single-family homes or owning more than 49% of equity in issuers that hold over 100 SFRs.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 7186

Summary of H.R. 7186 – American Family Housing Act (119th Congress)

Overview

  • Purpose: Prohibits certain large-scale investment entities from purchasing single-family residences (SFRs) and from acquiring significant equity stakes in issuers that hold large SFR portfolios, with the aim of limiting large-scale investor dominance in the single-family housing market.
  • Introduced: January 21, 2026 by Rep. Mary Miller (and original cosponsors listed in the bill text).
  • Jurisdiction: United States; referred to the House Committee on Financial Services.
  • Short Title: American Family Housing Act.

Key Provisions

Section 12A. Restrictions on Purchasing Single Family Residences

  • Effective date: The restrictions take effect 100 days after the date of enactment of this section.
  • Major prohibition (general rule): 1) A large-scale company may not purchase any single-family residence (including purchases from the Federal Government). 2) A large-scale company may not purchase the equity securities of a qualified issuer if such purchase would result in the company holding more than 49% of the equity securities of that issuer.
  • Definitions (Section 12A(a)-(d)):
    • Large-Scale Company: A registered investment company or private fund with more than $100,000,000,000 in assets under management (AUM).
    • Private Fund: An issuer that would be an investment company but for certain exemptions (paragraphs 1 or 7 of section 3(c) of the Investment Company Act).
    • Qualified Issuer: An issuer that holds, as assets, more than 100 single-family residences.
    • Single-Family Residence (SFR):
    • A dwelling unit built for one household to live in, functioning as an independent living space without shared walls or utilities.
    • Excludes dwellings in condominiums or cooperative housing projects.
  • Scope: Targets large-scale purchasers (as defined) and restricts both direct SFR acquisitions and aggressive equity positions in portfolio holders that exceed ownership thresholds.

Who Is Affected

  • Large-scale investment companies: Specifically those with >$100 billion AUM. These entities would be restricted from:
    • Directly purchasing single-family homes.
    • Acquiring more than 49% of the equity securities of a qualified issuer (an issuer holding more than 100 SFRs).
  • Qualified issuers: Property portfolio companies that hold large SFR inventories (more than 100 SFRs) would be constrained from new investments that would push a large-scale company over the 49% ownership threshold.
  • SFR market participants: Indirectly, by limiting the role of large institutional buyers in acquiring single-family homes, potentially affecting competition, pricing dynamics, and availability for homeowners.

Procedural and Timeline Aspects

  • Enactment timeline: Once enacted, the 100-day countdown begins for the effective date of the new restrictions.
  • Enforcement and regime: The bill proposes amendments to the Investment Company Act of 1940, adding Section 12A with the described prohibitions and definitions.
  • Next steps (if enacted): The bill would undergo committee consideration, potential markups, and floor votes in Congress, followed by assent from the President to become law.

Potential Impacts and Considerations

  • Housing affordability and availability: By curbing large-scale institutional acquisitions of SFRs, the bill aims to preserve more ownership opportunities for individual homebuyers and potentially influence rental markets.
  • Market structure: Could reduce consolidation in the single-family rental market and limit rapid-build-out of SFR portfolios by funds.
  • Regulatory reach: Applies specifically to large registered investment companies and private funds meeting the >$100B AUM threshold, limiting the effect on smaller funds and other real estate investment strategies.
  • Implementation questions: Practical enforcement would require monitoring fund assets under management, identifying qualified issuers, and tracking ownership stakes relative to the 49% threshold.

Bottom Line

H.R. 7186 seeks to curb the influence of very large institutional buyers in the single-family housing market by prohibiting direct SFR acquisitions and restricting significant equity ownership in large SFR portfolio issuers, with a defined 100-day post-enactment effective period and precise definitions to guide application.

Compiled from official sources — confirm details with the bill’s official record.

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