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Friday, June 13, 2025

Wall Street Landlords



A breakdown of Congressman Ro Khanna’s Stop Wall Street Landlords Act and what he means by “Wall Street landlords”:

๐Ÿ›️ What is the Stop Wall Street Landlords Act?

This proposed legislation (introduced in the 117แต—สฐ Congress as H.R. 9246 on October 28, 2022) aims to discourage large investors—those with over $100 million in assets—from purchasing and renting single-family homes (1–4 units). Its key provisions include:

  1. Denying tax breaks:

    • Bars large investors from claiming deductions on mortgage interest, insurance, and depreciation tied to single-family homes (congress.gov, yieldpro.com).

  2. Imposing a hefty excise tax:

    • On sale or transfer of these properties, matching the full sale price of the home (congress.gov).

  3. Prohibiting access to government-backed financing:

  4. Introducing a “neighborhood homes tax credit”:

Status Update:

  • Introduced in October 2022; referred to committees but died on January 3, 2023, at the end of the 117แต—สฐ Congress (billtrack50.com).

  • Khanna has since reintroduced the bill multiple times and continues to push for its passage (khanna.house.gov).

๐Ÿฆ Who are “Wall Street landlords”?

Khanna uses the term to describe large institutional investors—like private equity firms, hedge funds, and real estate investment trusts (REITs)—that:

  • Buy up large blocks of single-family homes, often in bulk;

  • Rent them out as investment properties;

  • Leverage governmental tools such as Fannie Mae or Freddie Mac financing, using taxpayer-backed loans;

  • Sometimes neglect property upkeep or drive up rents, putting ordinary buyers and tenants at a disadvantage (khanna.house.gov, vox.com).

In his words, these “landlords” are “scooping up housing in working-class neighborhoods and holding them for appreciation,” turning potential homeowner opportunities into rental investments (notus.org).

๐ŸŽฏ Why it matters

  • Homeownership barriers: Khanna argues that institutional investors artificially inflate home prices, making it harder for first-time buyers to compete (vox.com).

  • Policy shift: The bill aims to remove government support from corporate property speculation, while also encouraging owner-occupied construction in neglected areas (vox.com).

  • Not a supply fix: Khanna acknowledges this measure alone won’t solve the housing crisis—but sees it as a necessary piece alongside boosting housing supply and down-payment aid (vox.com).

✍️ Summary

✅ Goal ⚙️ Mechanism
Reduce institutional buying Deny tax breaks & impose full-price sales excise tax
Limit access to federal mortgage support Bar Fannie/Freddie/Ginnie aid
Encourage owner-occupied housing Create neighborhood tax credits

“Wall Street landlords” are large investors snapping up single-family homes, often with taxpayer-backed financing, making it more difficult for everyday Americans to buy homes or afford rising rents.

Khanna’s bill tackles this “financialization” of U.S. housing—removing incentives for these investors while promoting homeownership and community development.


It’s highly unlikely the Stop Wall Street Landlords Act will pass in 2026 even under full Democratic control—unless it's significantly modified. Here’s why and how it could be adjusted to win support:

๐Ÿšง 1. Political Landscape & Opposition

  • Republican resistance expected: The House’s flip back to Democrats helps proponents—but even within the party, there's hesitation to enact what critics call a blunt, punitive bill (businessinsider.com).

  • Industry pushback: Groups like the American Investment Council argue the bill “won’t help address the real challenges” and could reduce rental housing supply (vox.com).

  • Moderate Dem concerns: Experts, including Urban Institute leadership, have flagged Khanna’s approach as “punitive,” noting that institutional landlords can help finance repairs and fill market gaps (vox.com).

✨ 2. What Needs Modification

To garner unity within the Democratic Party, adjustments could include:

  • Affordability and string requirements: Tie financial disincentives (taxes, deduction limits) to rent caps, tenant protections, or mandates for a % of homes to be kept affordable—this addresses both equity and housing supply.

  • Portfolio caps over blanket bans: Instead of punishing any institutional investor above $100 M, set ownership limits (e.g., max 20 or 50 homes)—mirroring similar proposals in some states (wsj.com).

  • Exempt or soften carve-outs: Create exemptions for mission-driven operators—like housing co‑ops or community lenders—or smaller investors who invest in low‑income areas.

  • Boost supply-side incentives: Expand the current neighborhood homes tax credit into a larger, refundable credit or include direct grants to public/private developers building affordable owner-occupied units, complementing demand-side restrictions (vox.com).

  • Phased/targeted rollout: Implement regulations gradually—first in markets with high displacement risk—making the act more politically viable and research-informed.

✅ 3. Why These Changes Matter

Problem Proposed Fix Why It Helps
Reduces supply risk Portfolio caps + phase-in Maintains investor participation where needed
Risk to renters Affordability strings Anchor regulations in benefits for tenants
Political buy-in Exemptions + flexibility Addresses moderate Dem and pro-housing concerns
Housing affordability Boost supply credits Aligns with wider party priorities—supply + cost relief

๐Ÿงญ 4. Likelihood of Passage

If passed, a retooled version could find allies in progressive and moderate Democrats by:

  • Framing it as anti-greed + pro-homeownership.

  • Balancing regulation with market solutions.

  • Making it targeted, equitable, and constructive—not broad stroke punishment.

Without these changes, though, the act is still seen as a "warning shot" with a steep hillside to climb (wsj.com, commondreams.org, steinbridge.com, businessinsider.com).

✅ TL;DR

  • Will it pass? Only if Democrats hold both chambers and reframe it to address housing supply, affordability, and investor incentives—for now, it remains stalled.

  • Must-haves for passage: Rent/affordability conditions, ownership limits, gradual rollout, targeted scope, exemptions, and stronger supply-side support.

  • Goal: Make the bill a balanced housing reform—not just a punitive tax—and it may become part of the 2025 housing agenda.




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