Sen. Warnock’s ban on corporations buying single-family homes becomes federal law

By Megan Sayles
AFRO Staff Writer
msayles@afro.com

A new act spearheaded by Sen. Rev. Raphael Warnock (D-Ga.) now bans private equity firms from mass-purchasing single-family homes. The bipartisan legislation, named the 21st Century ROAD to Housing Act, became federal law on July 11.

Under the legislation, corporations that own more than 350 single-family homes are prohibited from purchasing any additional single-family homes. If they do, they are subject to a fine of either $1 million or three times the purchase price of the home, whichever is greater. 

Central to Warnock’s motivation for the bill is giving families a better chance to buy homes instead of competing with large corporate investors. In Atlanta alone, large corporations own more than one in four single-family homes, or over 72,000 properties. 

“I hear from Georgians across the state who have been clamoring for action from Washington on the affordable housing crisis, and this legislation is proof that when we center the people instead of politics, we can get good policy done,” said Warnock in a July 11 news release. “I’m proud to have contributed to increasing our nation’s housing and lowering costs for hardworking Georgia families.” 

The 21st Century ROAD to Housing Act drew significant bipartisan support. After passing both the House and Senate, the bill became law without the 47th president’s signature after he neither signed nor vectored it within the constitutionally required 10-day period. 

Revenue generated under the legislation’s fines will be used to bolster new housing construction and financial assistance programs for first-time homebuyers. 

In addition to placing new restrictions on private equity firms, the legislation incorporates measures from Warnock’s Appraisal Modernization Act, which allows homeowners to request a second appraisal to help address appraisal bias. It also includes provisions from several other bills, including authorizing $1 billion in grants for local governments to incentivize new housing construction, increased federal funding for affordable housing construction and streamlined federal permitting and environmental requirements for affordable housing projects. 

Atlanta Mayor Andre Dickens joined Warnock in Southwest Atlanta’s Adamsville neighborhood to celebrate the bill becoming federal law on July 13. Dickens called the legislation a “pivotal moment for housing affordability.” 

“The provisions that the senator fought for give cities additional tools to protect neighborhoods, expand opportunities for first-time homebuyers and help responsible local landlords compete on a more level playing field,” said Dickens during the July 13 press conference. “That’s why I want to offer my sincere thanks to Senator Warnock.”

“His leadership has helped move forward bipartisan legislation that acknowledges the challenges cities are facing and provides meaningful solutions for families who just want the opportunity to own a home and start building wealth,” he continued. 

Civil rights attorney Benjamin Crump also took to social media to praise Warnock’s work. 

“Homeownership opens the door to stability, opportunity and generational wealth. Thanks to Sen. Raphael Warnock’s leadership, legislation is now federal law preventing large institutional investors that own 350 or more single-family homes from buying additional existing single-family homes,” wrote Crump on X (Twitter), on July 13. “This will help more hardworking families pursue the dream of owning a home.” 

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