Merkley's bill taxes hedge funds $5,000 per home to force them out of housing market
Bill would make corporate home buying unprofitable by imposing $5,000 tax per purchased house
Sen. Jeff Merkley and Rep. Adam Smith introduced the HOPE for Homeownership Act in the 119th Congress. The bill uses the tax code to push hedge funds out of the single-family housing market, rather than a direct ownership ban.
Key Concepts
Essential concepts and terms to understand this topic
Federal Limits
The constitutional principle that federal power is limited to powers explicitly granted in the Constitution.
Prohibition of Poll Taxes
Constitutional ban on requiring tax payment to vote in federal elections
Federalism
Power is divided between the federal government and state governments, each exercising authority in designated areas.
Key People
5
Jeff Merkley
U.S. Senator (D-OR), lead sponsor
Merkley has led multiple versions of this legislation since 2023, arguing that hedge fund ownership of single-family homes is a structural threat to middle-class homeownership. He frames the issue as Wall Street extracting wealth from communities and calls for using the tax code to make institutional ownership financially unviable.
Adam Smith
U.S. Representative (D-WA-09), House sponsor
Smith leads the House companion bill and has argued that institutional investor concentration in housing markets near military bases and working-class communities is particularly damaging to families on fixed incomes and service members.
Josh Riley
U.S. Representative (D-NY-19), bipartisan bill sponsor
Riley introduced the Families First Housing Act with Republican Pat Harrigan, creating a more moderate bipartisan alternative that focuses on a first-look window for families rather than an outright tax penalty on hedge funds.
Pat Harrigan
U.S. Representative (R-NC-10), bipartisan bill sponsor
Harrigan's co-sponsorship with Riley represents the Republican flank of the issue. His participation signals that at least some conservatives share the concern about Wall Street crowding out family buyers, even if they prefer a softer approach.
Donald Trump
President of the United States
Trump has rhetorically expressed interest in limiting Wall Street purchases of single-family homes, creating unusual common ground with Democratic sponsors. As of early 2026, the Trump administration has not introduced its own legislation or pushed Congress to act.
What you can do
Contact your representative and senators to support legislation limiting Wall Street home buying
civic action
The HOPE for Homeownership Act and the Families First Housing Act need both Democratic and Republican support to advance. If you support limits on institutional home buying, contacting your House member and both senators — especially if they are Republican — is the most impactful civic action.
Research how many single-family homes institutional investors own in your metro area
research
The Center for American Progress and other organizations have published metro-level data on institutional investor home ownership. Understanding the local scale of the problem helps make the case to local elected officials and builds support for state-level restrictions where federal action stalls.
Engage your city council on local ordinances restricting investor purchases
civic action
Several cities have passed or are considering local first-look ordinances that give owner-occupant buyers a window before investors can bid on homes. Local governments can act faster than Congress and create pressure for federal legislation.