US Treasury Proposes Rule to Restrict Institutional Purchases of Single-Family Homes

The U.S. Treasury Department has proposed a new rule to prevent large institutional investors from buying single-family homes, as mandated by the ROAD to Housing Act. This legislation prohibits such investments unless they are for 'excepted purchases,' like build-to-rent programs. The rule targets investors controlling over 350 homes and includes penalties up to $1 million or three times the property's purchase price for violations, aiming to address housing market dynamics.