Stop Wall Street Landlords Act of 2026
Summary
The "Stop Wall Street Landlords Act of 2026" aims to discourage large investors from owning single-family homes by disallowing certain expense deductions, imposing an excise tax on sales, and prohibiting federal mortgage assistance. This bill targets investors with assets exceeding $100 million. It excludes governmental entities and certain tax-exempt organizations.
The bill amends the Internal Revenue Code of 1986 and the Housing and Community Development Act of 1992. Revenue generated from the excise tax will be deposited into the Housing Trust Fund to increase affordable rental housing.
The Act seeks to level the playing field for individual homebuyers and address housing affordability concerns.
Expected Effects
The Act will likely increase the cost of owning single-family homes for large investors. This could lead to a decrease in the number of single-family homes owned by these investors.
It may also increase the supply of homes available for individual buyers and renters. The excise tax revenue could boost funding for low-income housing initiatives.
However, it could also reduce investment in housing and potentially impact rental rates.
Potential Benefits
- Increased housing affordability for individual buyers.
- More available single-family homes for purchase by individuals and families.
- Funding boost for the Housing Trust Fund, supporting low-income housing.
- Potential reduction in large investor influence on the housing market.
- Discourages speculative buying of single-family homes by large entities.
Most Benefited Areas:
Potential Disadvantages
- Potential decrease in investment in the housing market.
- Possible increase in rental rates due to reduced supply from large investors.
- Complexity in defining and regulating "specified large investors."
- Potential for unintended consequences on real estate markets.
- May face legal challenges regarding fairness and discrimination.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is complex. Congress has the power to tax and regulate interstate commerce (Article I, Section 8). However, the bill's potential impact on property rights and equal protection under the law (14th Amendment) could raise constitutional concerns.
The excise tax and disallowance of deductions are within Congress's taxing authority. The prohibition on federal mortgage assistance aligns with Congress's power to regulate federal programs.
Judicial review could assess whether the classifications and regulations are rationally related to a legitimate government interest.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).