U.S. Representative Ro Khanna speaks during a press conference at the U.S. Capitol in Washington, D.C.,on Nov. 18, 2025.
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WASHINGTON, January 12, 2026 – A surprising alliance is brewing in Washington as California Representative Ro Khanna reintroduced a bill on Friday aimed at limiting large institutional investors in the housing market, echoing a recent call to action from former President Donald Trump. This unexpected convergence highlights growing concerns over housing affordability and the role of Wall Street in the real estate sector.
A Rare Point of Agreement
Both a Democratic Congressman and a former Republican President are targeting the same issue: institutional investment in housing.
Trump first voiced his intention to address the issue on January 7 via a post on Truth Social, stating he would “immediately taking steps to ban large institutional investors from buying more single-family homes.” This announcement came amidst a series of populist economic moves as Trump seeks to alleviate voter anxieties about affordability ahead of the 2026 midterm elections.
Recent polling data underscores these concerns.A Marist poll revealed that only 36% of Americans approve of trump’s handling of the economy,while 57% disapprove.This presents a significant challenge for Trump’s fellow Republicans as they attempt to maintain their slim majorities in both the House of Representatives and the Senate.
Khanna directly responded to Trump’s statement, stating, “If President Trump is serious about taking on Wall Street landlords, Congress shoudl pass my bill and he should sign it into law.” He further emphasized, “Homes should be owned by people, not wealthy corporate landlords who are buying up single-family homes and pushing the dream of homeownership out of reach for to many Americans.”
The proposed legislation, known as the Stop Wall Street Landlords Act, seeks to curtail the advantages enjoyed by large investors.According to Khanna’s office, the bill would eliminate tax benefits-including deductions for mortgage interest, insurance, and depreciation-for these institutional buyers.
Furthermore, the bill would direct federal agencies like fannie Mae and Freddie Mac to prohibit the purchase of single-family home mortgages by large institutional investors. A 100% real estate transfer tax would be imposed on any single-family home sold by these investors within 18 months of the bill’s enactment.
Previous iterations of the bill, including one introduced in late 2024, defined a “large institutional investor” as any entity or individual with assets exceeding $100 million. Currently, Khanna has secured 13 Democratic cosponsors for the bill. However, Trump’s public stance on the issue could perhaps sway some Republican members of the House to support the effort.
Khanna expressed his willingness to collaborate with Trump, stating in an interview, “I’m willing to work with Trump on legislation if it’s actually going to help the working class.” He added, “If he calls me up, I’ll help lead the bill.”
Trump is scheduled to address his housing proposal at the World Economic Forum in Davos on Wednesday. He announced on Truth Social, “I will discuss this topic, including further Housing and Affordability proposals, and more, at my speech in Davos.”
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