Congress has proposed new legislation to ban Wall Steet Investors and Hedge Funds from buying houses in the US Housing Market in 2024. This ban would also require Wall Street companies - including Blackstone, Invitation Homes, and Progress Residential - to sell off all their houses over the next 10 years.

The bill in Congress is called the End Hedge Fund Control of American Homes Act. And it would require all large investors in the Housing Market (who own more than $50 Million) to sell off their portfolio over ten years.

One city where investors could start selling soon is Las Vegas. This is an area where the investors piled in during the pandemic, buying as many as 40% of the houses in certain neighborhoods. But now those investor purchases have crashed and some investors - like AmericanHomes4Rent - are starting to sell their properties.

However - this selloff from investors is unlikely to crash the entire Housing Market. Because the big hedge funds that own real estate only own about 574,000 homes - about 0.6% of the entire US Housing Market. If they start to sell, they could cause home prices in certain cities and neighborhoods to collapse. But it is unlikely to cause a national housing downturn.

That's because there's 24 million investor-owned homes total, and most of these investors won't be impacted by this bill. Many of these real estate investors own houses so they can claim the tax depreciation benefits of owning real estate.
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