Congressman Khanna Reintroduces Bill to Limit Foreign and Institutional Home Ownership Amid Housing Affordability Concerns

Rep. Ro Khanna (D-CA) has formally reintroduced the Homeownership Protection Act of 2026, a legislative effort designed to curb the acquisition of single-family homes by foreign entities and large real estate investment firms. The bill would impose a 20% excise tax on purchases of residential properties by non-U.S. citizens and require institutional buyers to disclose their ownership structure and intent. This follows growing public concern over the impact of investor activity on housing supply and affordability. The legislation targets a sector where investor purchases accounted for 22% of all single-family home transactions in 2025, according to the National Association of Realtors. In high-demand markets like San Francisco, Los Angeles, and Austin, investor purchases made up over 35% of transactions, exacerbating competition and price inflation. The bill’s provisions aim to restore balance by limiting the number of homes such entities can acquire and prioritizing access for first-time buyers and long-term residents. The proposed 20% tax on investor purchases is expected to generate approximately $8.4 billion in federal revenue over five years, according to congressional budget estimates. The funds would be directed toward expanding the Low-Income Housing Tax Credit program and supporting local housing trust funds. Proponents argue that the measure would help stabilize markets and prevent speculative bubbles, particularly in regions with constrained housing supply. Market analysts note that the bill could affect major real estate firms such as Blackstone Group, Invitation Homes, and Realty Income, which collectively own over 120,000 residential units. While no immediate market disruption is anticipated, the legislation signals a shift in national policy toward prioritizing homeownership for American families over profit-driven real estate investment.