The A bill to amend the Sherman Act to prohibit certain entities from purchasing residential real estate, and for other purposes.: Explained

Overview: A Bill To Amend The Sherman Act To Prohibit Certain Entities From Purchasing Residential Real Estate, And For Other Purposes.

A bill to amend the Sherman Act to prohibit certain entities from purchasing residential real estate, and for other purposes. is a Senate proposal that bans specified entities from buying residential real estate. The bill is aimed at shifting more home purchase opportunities back to individuals and households who plan to live in the home.

For home buyers, the practical goal is simpler shopping: fewer institutional-style bids and less pressure from buyers that can move quickly at scale. For home sellers, the bill changes the mix of buyers competing for a home, which can reshape demand and pricing in some markets.

The bill was introduced on February 26, 2026, and was read twice and referred to the Senate Committee on the Judiciary.

Note that bills often change on their way to becoming law, so this page will update as new details emerge. For real-time updates, subscribe to our newsletter.

What Is The A Bill To Amend The Sherman Act To Prohibit Certain Entities From Purchasing Residential Real Estate, And For Other Purposes.?

A bill to amend the Sherman Act to prohibit certain entities from purchasing residential real estate, and for other purposes. changes who is allowed to buy residential real estate by banning purchases by specified entities. In plain terms: the bill draws a line between everyday home buyers and certain entities that buy homes as a business strategy.

Today, residential homes can be purchased by individuals, families, and a wide range of entities, including companies and institutional investors. That broader buyer pool increases demand in some neighborhoods, especially where homes are easy to rent out. More demand often leads to more competing offers, which affects how quickly homes sell and how much buyers offer to win a contract.

Under this bill, specified entities would be prohibited from purchasing residential real estate. The intent is to reduce competition faced by individual home buyers and put more homes within reach of owner-occupants.

Who Benefits From The A Bill To Amend The Sherman Act To Prohibit Certain Entities From Purchasing Residential Real Estate, And For Other Purposes.?

Home buyers benefit when fewer large, well-capitalized buyers are in the bidding mix for the same starter homes, move-in ready homes, and rental-friendly properties. When demand from restricted buyers is removed, more listings stay in the lane for households buying a primary residence.

Home sellers also benefit from clarity about the buyer pool. In many areas, sellers receive multiple offers from a mix of households and companies. This bill refocuses demand toward individual buyers, which supports a market where homes are purchased to live in, not only to operate as rentals.

This bill is centered on residential real estate. It does not change mortgage underwriting, down payment rules, credit score requirements, or how pre-approval works. Your financing still matters, and strong offers still win, but the bill is designed to reduce a specific source of competition.

How The A Bill To Amend The Sherman Act To Prohibit Certain Entities From Purchasing Residential Real Estate, And For Other Purposes. Works

The bill works by prohibiting certain entities from purchasing residential real estate. That prohibition limits corporate and institutional participation in home purchases, which changes the number and type of bids a seller receives.

Here is how that translates into a real home search.

1. The bill reduces the buyer pool for some homes

How it works today: when a home hits the market, the seller can accept an offer from almost any qualified buyer, including individuals and many types of entities. In neighborhoods popular with renters, investor demand increases the number of offers.

What the bill changes: specified entities are not allowed to purchase residential real estate, which reduces the number of bids from those buyers.

Example: A seller lists a $350,000 home and receives five offers:

• Three offers from households planning to live in the home
• Two offers from restricted entity buyers

With the bill in effect, the two restricted offers are removed, leaving three offers from households. That shift reduces bidding pressure for the remaining buyers.

2. The bill targets competition, not financing

How it works today: buyers compete on price, speed, and certainty. Financing strength matters because sellers want confidence that the deal closes.

What the bill changes: it narrows who can bid. It does not rewrite mortgage program rules.

Example: Two buyers both want a $450,000 home:

• Buyer A has a strong Pre-approval and a clear plan for closing costs
• Buyer B has a strong Pre-approval and the same plan for closing costs

Under this bill, the deciding factor stays tied to the offer terms between eligible buyers, not whether a restricted buyer enters the bidding.

3. The bill reshapes demand and pricing in some markets

How it works today: when more buyers chase the same home, prices rise faster and homes sell faster. Investor-heavy demand is more noticeable in certain ZIP codes and price points.

What the bill changes: by limiting purchases by specified entities, the bill reduces demand from those buyers in the neighborhoods where they are active.

Example table: buyer competition before vs. after

Fewer total offers does not guarantee a lower price for every home, but it does move the market toward a more balanced offer environment for individual buyers.

Who Sponsors The A Bill To Amend The Sherman Act To Prohibit Certain Entities From Purchasing Residential Real Estate, And For Other Purposes.?

A bill to amend the Sherman Act to prohibit certain entities from purchasing residential real estate, and for other purposes. is introduced in the Senate and is under consideration in the 119th Congress. The bill is currently referred to the Senate Committee on the Judiciary, where lawmakers review the proposal and consider changes.

For the latest legislative updates and cosponsors, see the Bill Tracker above.