News Type: Roundtable Weekly

RER’s State of the Industry Meeting Spotlights Housing Affordability, Energy, Tax Policy, Capital Markets, and Homeland Security

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This week, The Real Estate Roundtable’s (RER) State of the Industry (SOI) Meeting brought together policymakers, industry leaders, and experts to examine the market and policy landscape shaping the economy and commercial real estate in 2026—from housing affordability and financing conditions to energy constraints, tax policy, homeland security, and geopolitical uncertainty. (Agenda, Jan. Executive Summary, Policy Priorities)

  • The general themes emphasized throughout the meeting by RER members and guests centered on the value of communicating smart, timely issue analysis to policymakers, as well as the benefits to business risk management from political engagement. 
  • RER’s policy advisory committees on capital and credit, tax, sustainability, and homeland security were highlighted for producing trusted, fact-based analysis that strengthens the organization’s credibility and effectiveness. Similarity noted was RER’s political action committee (REALPAC), in supporting the industry’s advocacy goals.
  • RER leaders underscored that Washington policymaking is strategic, coordinated, and increasingly consequential for real estate investment and operations—and that staying engaged is essential as today’s debates will shape tomorrow’s legislative outcomes.

Meeting Speakers

  • Rep. Jason Smith (R-MO) (Chair, House Ways and Means Committee) was presented RER’s Champion of the Economy Legislative Leadership Award for his efforts on the One Big Beautiful Bill Act (OB3). He discussed the committee’s work ahead on bipartisan tax initiatives, trade issues, affordability, and housing-related incentives such as the low-income housing tax credit (LIHTC).
  • Mark Halperin (Editor-in-Chief, 2WAY; Host, “Next Up”) provided an overview of the current political environment, discussing President Trump’s governing style, the dynamics shaping the 2026 midterms, and early positioning for the 2028 presidential field.
  • Rep. Andy Barr (R-KY) (Chairman of the Financial Institutions Subcommittee on the House Financial Services Committee; Member, House Committee on Foreign Affairs) discussed the committee’s expected early action to extend the TRIA Program Reauthorization Act of 2026 (H.R. 7128), emphasized the importance of regulatory reform to strengthen capital formation and credit availability, discussed the Committee’s the bipartisan Housing for the 21st Century Act (H.R. 6644) and argued that boosting housing supply—and supporting financing capacity— is essential to improving affordability.
  • Rep. Mike Lawler (R-NY) (Member, House Committees on Financial Services and Foreign Affairs) stressed the importance of bipartisan legislating, framed housing affordability as a supply-and-investment challenge, and urged regulatory relief to spur new development. He also highlighted his bipartisan, bicameral transit-oriented housing bill, Build Housing, Unlock Benefits and Services (HUBS) Act, which would cut red tape and expand federal infrastructure loan tools to support transit-oriented development and boost housing supply. (Roundtable Weekly, Jan. 16)
  • Philip L. Swagel (Director, Congressional Budget Office) delivered a macroeconomic outlook on growth, inflation, and interest rate expectations, and highlighted long-term fiscal pressures, tariff and immigration dynamics, and the need to reduce regulatory bottlenecks that constrain housing supply and infrastructure investment.
  • Rep. Mike Flood (R-NE) (Chairman, House Financial Services Committee, Subcommittee on Housing and Insurance) joined a joint session of RER’s Real Estate Capital Policy Advisory Committee (RECPAC) and Research Committee to address housing and insurance priorities for the year ahead, including his TRIA Program Reauthorization Act of 2026 (H.R. 7128), the National Flood Insurance Program, and efforts to improve housing supply and affordability.

Committee Meetings

Joint Real Estate Capital Policy Advisory Committee (RECPAC) and Research Committee

  • During the joint session, Hessam Nadji, (President & CEO, Marcus & Millichap) made a presentation on the Commercial Real Estate Investment Outlook for 2026 and led a market discussion with RECPAC Co-Chair Bryan McDonnel (Managing Director, Chair of Global Debt & Agriculture, PGIM Real Estate), David Fowler (BNY), and Andy Richard (Citigroup Global Markets Inc.). Genger Charles (Amherst), Sheila Greenwood (Invitation Homes), Lou Hayden (American Homes), and Ama Romaine (Pretium), held a panel on addressing the administration’s proposed restriction on institutional investments in single-family rentals. (See more in Housing story below)(See more in Housing story below) (Agenda & Speakers)

Tax Policy Advisory Committee (TPAC)

  • Kevin Salinger (Treasury Deputy Assistant Secretary, U.S. Treasury Department), Thomas Barthold (Chief of Staff, Joint Committee on Taxation), and other government speakers joined TPAC Chair Joshua M. Parker (Chairman & Chief Executive Officer, Ancora L&G), TPAC Vice Chair David Friedline (Partner, Deloitte Tax LLP) and committee members to discuss the continuing implementation of the OB3 Act, recent policy developments affecting sovereign investors in U.S. real estate, and the outlook ahead for tax legislation and regulatory changes. (Agenda & Speakers)

Sustainability Policy Advisory Committee (SPAC)

  • SPAC Vice Chair Tamara Chernomordik (VP, Corporate Responsibility, Kimco Realty led discussions on federal-state energy policy dynamics, the solar outlook, ENERGY STAR and Better Buildings, permitting reform, electricity reliability, AI-related load growth, and building performance standards. (Agenda & Speakers)

Homeland Security Task Force (HSTF)

  • Co-Chairs John Giacalone (VP, Global Safety and Security, Hilton Worldwide) and Amanda Mason (Executive Director, Global Intelligence, Related Companies) led a series of discussions on the evolving physical and cyber threat picture. Also joining the discussion were representatives of the FBI who discussed their new Homeland Security Task Force, Foreign Terrorist Organizations (FTO), and Criminal Activity; and Sports and Gaming (in light of the World Cup). The Task Force also discussed the growing importance of data center security as AI drives new operational and counterintelligence challenges. (Agenda & Speakers)

Next on RER’s FY 2026 meeting calendar is the Spring Roundtable Meeting in April. The Spring Meeting is limited to Roundtable-level members only. 

House Financial Services Committee Advances Long-Term TRIA Reauthorization Legislation

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The House Financial Services Committee marked up and passed with bipartisan support, the Terrorism Risk Insurance Act (TRIA) Program Reauthorization Act of 2026 (H.R. 7128), sponsored by Reps. Mike Flood (R-NE) and Andrew Garbarino (R-NY), extending the federal terrorism insurance backstop for seven years. (CIAT Letter | Hearing).

TRIA Reauthorization

  • The bill would extend TRIA through 2034 and raise the program trigger from $5 million to $10 million beginning in 2029. (PoliticoPro, Jan. 22)
  • The coalition letter emphasized that acting in 2026 would provide long-term certainty and help avoid disruptions if reauthorization were to slip into the program’s final year.
  • The legislation would also shorten the Treasury Department’s certification window for determining an act of terrorism from 90 days to 30 days, enabling claims to move sooner, along with other technical updates.
  • House Financial Services Committee Chairman French Hill (R-AR) said in his opening statement, “Extending TRIA not only safeguards American businesses but ensures that our economy remains resilient against potential threats.” (Press Release, Jan. 22)

Why It Matters

  • TRIA was originally enacted in 2002, following the 9/11 attacks. The program has been reauthorized four times—in 2005, 2007, 2015, and 2019—and is currently set to expire on Dec. 31, 2027.
  • While TRIA has never been triggered, it has provided a crucial backstop against losses from terrorist attacks for nearly two decades.
  • At almost no cost to the taxpayer, the TRIA Program has been the key factor in ensuring that the private insurance market has remained intact and continues to meet the needs of commercial policyholders during the on-going threat of a future terrorist attack—all while minimizing federal taxpayer exposure.

Roundtable Advocacy

Rep. Mike Flood (R-NE), lead sponsor of the bill at RER’S SOI RECPAC meeting
  • Since 9/11, RER has been at the forefront of efforts to enact a federal program to enable American businesses to secure the terrorism risk insurance coverage they need.
  • RER helped establish CIAT, a broad coalition of commercial insurance consumers formed immediately after 9/11 to ensure that businesses could obtain comprehensive and affordable terrorism insurance. (CIAT Talking Points on TRIA Reauthorization)
  • In September 2025, the House Housing and Insurance Subcommittee held a hearing on TRIA reauthorization, where members and witnesses from both parties voiced strong support for renewing the program ahead of its expiration.  CIAT also sent a letter before that hearing, warning that a lapse would trigger “a period of profound economic slowdown, posing a very real threat to our economic and homeland security.”  (Roundtable Weekly, Sept. 19)

The bill (H.R. 7128) now advances to the full House for consideration. RER and its CIAT coalition will continue working with policymakers to secure a long-term TRIA reauthorization ahead of 2027

Executive Order Seeks to Restrict Institutional Single-Family Home Purchases Amid Affordability Push

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This week, President Donald Trump signed an Executive Order directing federal agencies to restrict large institutional investors from purchasing single-family homes, framing the action as part of a broader effort to restore housing affordability and expand homeownership. (WSJ, Jan. 20)

State of Play

  • The Executive Order directs leaders at HUD, Treasury, FHFA, USDA, VA, and GSA to issue guidance limiting federal programs and government-sponsored enterprise (GSE) activities that facilitate institutional purchases of single-family homes that could otherwise be purchased by owner-occupants. (White House EO, Jan. 20)
  • The Order instructs the Treasury Secretary to develop formal definitions of “large institutional investor” and “single-family home” within 30 days, signaling that further details on implementation are to come. (White House EO, Jan. 20)
  • Agencies are also directed to promote first-look policies and disclosure requirements favoring individual buyers, while including narrow exceptions for build-to-rent communities planned and constructed as rental housing, and potentially other types of projects. (White House EO, Jan. 20)
  • DOJ and the FTC are instructed to review large-scale investor acquisitions in local housing markets for potential anticompetitive behavior, including coordinated vacancy or pricing strategies. (White House EO, Jan. 20)
  • Notably, the Order appears to focus on future acquisitions and does not contain language requiring sale, divestment, or unwinding of existing holdings, instead assuming continued ownership by requiring disclosure from current owners of single-family rentals. (White House EO, Jan. 20)

Remarks from Davos

  • Speaking at the World Economic Forum in Davos, Switzerland this week, President Trump reiterated many of the key points from the Executive Order.
  • In his speech, President Trump argued that institutional investors have distorted the housing market, stating that “homes are built for people, not for corporations,” and asserting that large firms purchasing “as much as 10 percent of houses on the market” have crowded out families and first-time buyers. (CNBC, Jan. 21)
  • President Trump also noted a complementary effort to lower borrowing costs, stating, “I’ve instructed government-backed institutions to purchase up to $200 billion in mortgage bonds to bring down interest rates.” (CNBC, Jan. 21)

Activity on Capitol Hill

  • Housing affordability was also a focus for leaders on Capitol Hill this week. HUD Secretary Scott Turner told the House Financial Services Committee that the administration is prioritizing housing supply expansion and regulatory rollback.
  • Sec. Turner cited HUD’s elimination of the Affirmatively Furthering Fair Housing (AFFH) rule—which he said “did not build one home” and functioned as a de facto national zoning mandate—as part of a larger push to cut red tape, empower local decision-making, and promote homeownership. (HUD Secretary Turner Testimony, Jan. 21)
  • On Thursday, the House Oversight Subcommittee on Economic Growth held a hearing titled “Housing Affordability: Saving the American Dream,” examining regulatory barriers, supply constraints, and market-based approaches to lowering housing costs. (House Oversight Committee, Jan. 22)
  • NAHB Chairman Buddy Hughes testified that regulatory burdens are a central driver of affordability challenges, noting that “nearly 24 percent of the price of a new single-family home is due to regulatory regimes at the state, local and federal levels,” which he said directly increase costs and limit housing production. (Witness Statement, Jan. 22)
  • AEI Housing Center Co-Director Edward Pinto told lawmakers that restrictive state and local land-use regulations are an “immovable object” constraining supply and driving prices higher, while demand-side measures alone risk exacerbating price pressures. (Witness Statement, Jan. 22)

What’s Next

  • The White House has indicated that additional housing-related executive actions are under consideration, particularly measures aimed at first-time homebuyers, as the administration looks to demonstrate progress on housing affordability ahead of the midterm elections. (Washington Post, Jan. 9)
  • The administration has also signaled its intent to pursue legislation that codifies elements of the Executive Order banning institutional investors from purchasing single-family homes, though prospects remain uncertain given jurisdictional, legal, and political hurdles. (White House EO, Jan. 20 | FOX Business, Jan. 21)

RER Advocacy

  • RER has consistently emphasized that expanding housing supply—not restricting capital—is the most effective path to improving affordability.
  • During this week’s RECPAC meeting, Genger Charles (Amherst), Sheila Greenwood (Invitation Homes), Lou Hayden (American Homes), and Ama Romaine (Pretium) participated in a member panel examining proposals to restrict institutional investment in single-family homes and the implications for housing supply, affordability, and capital formation.
  • Panelists emphasized that institutional investors are one piece of the housing ecosystem—not the reason homebuyers are being priced out, pointing instead to chronic supply shortages, elevated interest rates, and local regulatory barriers that raise costs and constrain production.
  • RER has also highlighted research showing affordability pressures are driven primarily by supply shortages, construction costs, and mortgage rates—not institutional ownership levels. (Roundtable Weekly, Jan. 9)
  • RER President and CEO Jeffrey DeBoer has stressed that “the gap between supply and demand is the true cause of today’s housing crisis,” calling for common-sense reforms that remove barriers to development and maintain incentives for the capital needed to build, modernize, and expand the nation’s housing stock. (Roundtable Weekly, Jan. 9)

RER will continue working with policymakers and the administration to advance supply-forward housing solutions that increase production, preserve access to capital, and help families—whether renters or homeowners—achieve the American Dream.

RER, Nareit Urge Practical GHGP “Scope 2” Standards for Real Estate’s Energy Purchases

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This week, The Real Estate Roundtable (RER) and Nareit submitted joint feedback to the Greenhouse Gas Protocol (GHGP) on proposed updates to its Scope 2 Guidance. The submission urges GHGP to preserve optional hourly and narrow geographic matching for bulk clean energy purchases, rather than make these strict “24/7” procurement conditions mandatory. (Summary memo | detailed comments, Jan. 23)

Background

  • Scope 2 emissions result from the generation of electricity, steam and other power purchased or acquired by a customer from a utility provider or grid operator. These emissions are not directly controlled by building owners or tenants, but depend on the types of fuels that power off-site grid infrastructure. (US-EPA) 
  • Last year, GHGP unveiled a set of proposed revisions to its Scope 2 Guidance. GHGP’s recommended modification to its global guidelines would require companies to match clean energy procurements (such as renewable energy certificates or power purchase agreements) to their actual electricity consumption on an hour-by-hour basis, rather than on an annual basis—a practice often referred to as “24/7 matching.” (GHGP Press Release, Oct. 20) 
  • The changes also proposed tight narrowing of geographic deliverability standards, requiring the purchased clean energy to be co-located on-site and/or within the same local grid segment. 

RER and Nareit Collaboration

  • The comments RER and Nareit submitted this week emphasize that 24/7 matching is not practicable for the vast majority of U.S. businesses that use GHGP guidance to voluntarily account for Scope 2 emissions. 
  • As RER and Nareit explained, 24/7 matching is not workable as a “one size fits all” standard practice for commercial building owners because they do notcontrol how much energy tenants use. Owners of multi-tenant buildings do not have dependable access to leased space energy data on a monthly—much less hourly—basis. (Summary memo)  
  • The joint RER-Nareit comments also explain that there is not enough solar or wind generation in many U.S. markets to support GHGP’s restrictive geographic deliverability mandate, and market and policy headwinds are expected to make corporate investments in renewables more challenging in the short term.
  • Further, RER and Nareit raised concerns about scientific validity, noting that electricity does not physically flow in accordance with contractual arrangements and that strict hourly “matching” is a misleading accounting construct.
  • RER and Nareit back an alternative approach put forth by GHGP working group participants that would maintain the current Scope 2 Guidance approach, allowing for—but not requiring—optional 24/7 matching.

Why It Matters

  • GHGP’s existing Scope 2 “quality control” criteria are a proven, successful framework that have helped spur significant growth in U.S. clean power purchases since 2015. The 24/7 matching mandate would reverse this trend.
  • Mandating strict time and place restrictions for corporate procurements like RECs will make compliance burdens with the Scope 2 Guidelines more onerous, increase costs, disincentivize private sector investments in clean energy—and not result in better information for investors.

January 31 Deadline

  • Real estate companies and their assurance providers submitting direct feedback to GHGP may wish to incorporate points from the joint RER/Nareit summary memo and detailed comments.

RER, Nareit and allied real estate stakeholders will remain engaged to advocate for a practical, science-based Scope 2 framework as GHGP moves to adopt new guidance.

RER Backs Community Banking Reform to Expand Credit and Local Investment

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The Real Estate Roundtable (RER) submitted a letter of support this week for the Main Street Capital Access Act (H.R. 6955). RER praised the bill as a long-overdue step toward “common sense tailoring” of bank regulation in comments sent to House Financial Services Chairman French Hill (R-AR) and Financial Institutions Subcommittee Chairman Andy Barr (R-KY). (Letter, Jan. 8)

Background

  • Introduced on Jan. 7, the Main Street Capital Access Act looks to ease regulations on small and mid-size banks and increase their access to capital.  
  • The measure bundles 29 bills that advanced through the full House Financial Services Committee last year, several of which received overwhelming bipartisan support.
  • Chairman Hill said, “Over the past year, the Subcommittee on Financial Institutions under Chair Barr’s leadership has worked tirelessly to examine outdated regulations, listen directly to small businesses, and confront barriers to access capital for small and mid-sized banks. I am proud to introduce the Main Street Capital Access Act with Chair Barr to reinvigorate our community banks and return commonsense back to Main Street.”
  • Chair Barr will be a featured speaker at RER’s State of the Industry Meeting next week.
  • The package includes legislation that promotes new bank formation, expands local community access, tailors bank regulation, fosters fair and transparent bank supervision, and supports competition, innovation, and responsible bank partnerships.

Roundtable Advocacy

  • RER’s letter emphasizes that community and regional banks are vital to the financing ecosystem for commercial and residential real estate, and therefore play a key role in addressing the nation’s housing shortage.
  • “The Main Street Capital Access Act will help revitalize communities across the nation by encouraging local bank formation and enhancing credit capacity,” wrote RER President and CEO Jeffrey DeBoer. “By easing outdated regulatory burdens for community banks, it will help unlock more capital for housing and small businesses and permit Main Street community lenders to focus on serving families and local economies, making life more affordable for Americans.”
  • DeBoer also underscored the impact of the decline in new bank formation in recent years. “This lack of ‘de novo’ or ‘new’ bank activity, coupled with ‘banking deserts’ that are common in rural areas, has led to higher costs for households and less access to capital and investment for small and medium-sized businesses,” DeBoer added.

Why It Matters

  • Community banks serve as a primary capital source for local housing and commercial real estate projects, particularly in underserved markets where larger institutions may have little presence.
  • RER has consistently advocated for right-sized financial regulation that promotes liquidity in the CRE market while maintaining safety and soundness in the banking system. The Main Street Capital Access Act aligns with this principle by streamlining oversight and promoting innovation in the small-bank sector.

Next Steps

RER will continue to work with Congress and the administration to advance policy measures that encourage capital formation, enhance credit capacity, support housing production, and foster economic development in communities around the country.

Washington Ramps Up Housing Agenda as Real Estate Coalition Presses for Solutions that Expand Supply

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President Trump and lawmakers ramped up efforts to address housing affordability this week—floating executive actions, new financing tools, and legislative proposals aimed at lowering costs for homebuyers and renters. The Real Estate Roundtable (RER) and a broad real estate coalition are urging policymakers to stay focused on the underlying challenge: the nation’s chronic housing supply shortage.

State of Play

  • Speaking at the Detroit Economic Club, President Trump previewed additional affordability proposals, saying, “In the coming weeks, I will be laying out even more plans to help bring back affordability.” (PoliticoPro, Jan. 14)
  • Last week, Trump said he would move to ban “large institutional investors” from purchasing single-family homes—without providing details on what legal steps the administration could take or how “large” would be defined. (Bloomberg, Jan. 8 | WSJ, Jan. 7)
  • Administration officials have indicated to Axios that more details on the administration’s housing policies will come from Trump’s speech at Davos this month. (Axios, Jan. 12)
  • Trump also instructed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities, an effort the administration says is intended to help reduce mortgage rates and monthly payments. (Politico | Bloomberg, Jan. 9)
  • The administration has floated the idea of “portable mortgages,” which would allow mortgage holders to sell their house and bring their low mortgage-rate along to their new home. (Axios, Jan. 14)
  • On Tuesday, the Republican Study Committee (RSC) unveiled a new “Making the American Dream Affordable Again” policy framework for a second reconciliation package, including housing-related concepts such as a proposed down payment assistance program and ideas tied to easing mortgage “lock-in.” (The Hill, Jan. 13)

Roundtable & Real Estate Coalition View

  • Large-scale SFR investments have helped revitalize distressed properties and communities, contributing to economic growth and stability.
  • RER has consistently emphasized that restricting investment is not a substitute for increasing supply—and that institutional capital can be part of the solution when it supports new housing development and expanded rental options.
  • In a Jan. 13 coalition statement, real estate organizations urged policymakers to prioritize supply-forward policies that expand construction and keep capital flowing to housing: “The only way to lower the cost of mortgages and rent is by encouraging, not hindering, investment… by building the housing our nation needs.” (Coalition Statement, Jan. 13)
  • RER has also highlighted research showing affordability pressures are driven primarily by supply shortages, construction costs, and mortgage rates—not institutional ownership levels. (Roundtable Weekly, Jan. 9)

Sen. Gallego’s Housing Affordability Plan

  • Sen. Ruben Gallego (D-AZ) released a housing affordability plan on Wednesday centered on boosting supply, reforming zoning and permitting, lowering costs, and strengthening resilience to extreme weather. (Politico| HousingWire,  Jan. 14)
  • RER President and CEO Jeffrey D. DeBoer welcomed elements of Gallego’s plan focused on increasing supply—such as ideas to expand the Low-Income Housing Tax Credit, encourage conversions of obsolete buildings into housing, and reward jurisdictions that streamline land use and zoning rules. (Press Release, Jan. 14)
  • DeBoer said RER looks forward to working with Sen. Gallego “to advance these important proposals in the most impactful way possible.”

Bipartisan Bill Incentivizes Transit-Oriented Housing

  • A bipartisan, bicameral group introduced the Build Housing, Unlock Benefits and Services (HUBS) Act to cut red tape and expand federal infrastructure loan tools to support transit-oriented development and boost housing supply. (One Pager;  Full Text)
  • Sens. Lisa Blunt Rochester (D-DE) and John Curtis (R-UT) are leading the bill in the Senate, alongside Reps. Laura Friedman (D-CA) and Mike Lawler (R-NY) in the House.
  • DeBoer said, “The Build HUBS Act is an important step to address the nation’s housing crisis. By expanding the Department of Transportation’s low-interest TIFIA/RRIF loan programs to finance housing in transit-oriented development projects, this bill will increase the supply of housing in America and bring more affordable housing options to communities across the country. We look forward to working with Congress to enact this legislation,” he added. (Press Release, Jan. 15)
  • Rep. Lawler will be a featured speaker at RER’s State of the Industry Meeting next week.

RER will continue working with policymakers and the administration to advance practical solutions that increase construction, support investment, and address the root causes driving today’s housing costs.

Trump Proposes Restricting Institutional Investment in Single-Family Housing

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President Donald Trump on Wednesday said he would move to ban “large institutional investors” from purchasing single-family homes, framing the proposal as part of a broader push to improve housing affordability. (Washington Post | CNBC, Jan. 7)

State of Play

  • “I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it. People live in homes, not corporations,” Trump wrote in a post on Truth Social. (Bloomberg, Jan. 8)
  • He indicated plans to discuss the issue at the World Economic Forum in Davos, Switzerland, later this month. (WSJ, Jan. 7)
  • The White House did not specify what executive actions, if any, would be taken, nor how it would define “large institutional investors.”
  • As currently described, the proposal would apply only to future acquisitions and would not require existing owners to divest their single-family rental (SFR) portfolios. (GlobeSt., Jan. 8)
  • Codifying a ban would require clear statutory language passed by Congress and signed into law—raising complex questions around thresholds, exemptions, and enforcement.
  • Legal challenges would likely follow, including claims related to takings, equal protection, and interstate commerce. Absent congressional authorization, the executive branch lacks clear authority to impose such a restriction solely through regulation. (Propmodo, Jan. 8)
  • Former House Financial Services Committee Chair Patrick McHenry said on Bloomberg on Thursday that housing affordability challenges are driven largely by state and local land-use and regulatory barriers, noting that institutional investors account for only a small share of the housing market. (Bloomberg, Jan. 8)
  • Also this week, Trump wrote on Truth Social that he is directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to address the national housing affordability crisis. Federal Housing Finance Director Bill Pulte said in an interview that Fannie and Freddie Mac will carry out the president’s directive by purchasing $200 billion in mortgage-backed securities from the public market. (Politico | Bloomberg, Jan. 9)

What the Data Shows

GAO Report
  • Research consistently finds that housing affordability pressures stem primarily from chronic supply shortages, high construction costs, and elevated mortgage rates—not institutional ownership levels.
  • According to SFR Analytics, the top 24 SFR owners control just over 520,000 homes—about 3.5% of rental homes and less than 1% of the total single-family housing stock—underscoring the limited market impact of large investors. (Bloomberg, Jan. 7)
  • Single-family rentals expanded after the Great Financial Crisis in 2008-2009 as investors helped absorb foreclosures, stabilize neighborhoods, and provide rental housing for households unable to buy.  (Federal Reserve Bank of St. Louis, Oct. 2025)
  • A 2024 Government Accountability Office (GAO) report found that large institutional investment expanded rental-housing options, helped stabilize neighborhoods after the financial crisis, and improved access to quality communities for low- and middle-income households. (GAO Report Highlights | Full GAO Report) (Roundtable Weekly, June 2024)
  • The GAO study also found that large-scale SFR showed that many working families desire the space provided by single-family homes, but may have low credit scores and otherwise can’t afford to buy them. Renting is commonly their best option for moving into better neighborhoods and school districts.
  • Another study out of UNC Charlotte, released in May 2024, finds that children from low- and moderate-income households see improved achievements in school when they rent single-family homes in neighborhoods where they cannot afford to buy.  (UNC Study Highlights | Full UNC Report, 2024)
  • An August 2025 report from the American Enterprise Institute found that institutional investors are not a primary driver of housing unaffordability, noting that housing shortages stem largely from restrictive zoning, limited new construction, and inflationary pressures. (American Enterprise Institute Report, Aug. 2025)
  • Stephen Scherr, co-president of Pretium Partners, which owns Progress Residential (RER member) one of the nation’s largest SFR operators, said on CNBC today that institutional investors help expand housing supply by de-risking large developments through purchase commitments that enable projects to move forward. He added that many renters they serve are not mortgage-eligible and use renting as a pathway to eventual homeownership. (CNBC, Jan. 9)

Roundtable View

  • Expanding the supply of housing across the geographic and economic spectrum is essential for the nation’s economic vitality.
  • Large-scale SFR investments have helped revitalize distressed properties and communities, contributing to economic growth and stability.
  • The Real Estate Roundtable (RER) has consistently emphasized that restricting capital will not solve the affordability crisis, and that increasing housing supply is the most effective path forward.
  • RER President and CEO Jeffrey DeBoer said: “Access to affordable housing is central to the American Dream, a dream that for some families means renting a home and for others means owning a home. For more than a decade, our nation’s supply of both owner-occupied and rental housing has, for a variety of reasons, not kept up with demand. This gap between supply and demand is the true cause of today’s housing crisis. The supply of housing must be increased.”
  • “This will require, among other actions, common sense policy reforms to local permitting and zoning regulations, recognizing in both national and local policy actions the reality of escalating labor and material costs and, importantly, the need to maintain and improve incentives to encourage the capital needed to develop, redevelop, and modernize the nation’s housing stock,” DeBoer said. “We work with all policymakers to advance initiatives that remove barriers to housing development, incentivize capital investment in housing, and help people achieve the American Dream.” 
  • In March 2025, RER and Nareit submitted comments to the Federal Trade Commission (FTC) in response to the agency’s inquiry into the impact of large-scale SFR operators and institutional investors on home prices and rents. (Letter, March 2025)
  • The letter emphasized that institutional investors account for a small fraction of home purchases and play a limited, but constructive role in expanding supply, rather than driving affordability challenges. (Roundtable Weekly, March 2025)
  • This week, RER member Sean Dobson (Chairman, CEO & CIO, Amherst) said restricting investment would not improve affordability. “Banning investors from putting capital into the housing market is not going to make affordability any better,” Dobson said during an appearance on Wednesday on Bloomberg Markets. (Bloomberg, Jan. 7)

Without meaningful steps to expand housing supply, proposals to limit institutional participation are unlikely to address the root causes of affordability pressures facing renters and would-be homebuyers, reinforcing RER’s ongoing work with policymakers and the administration to promote policies that increase housing supply and improve affordability.

Congressional Spending Package Preserves ENERGY STAR Funding

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A bipartisan, three-bill “minibus” appropriations package advanced by the House on Thursday preserves funding for ENERGY STAR, ensuring continued support through the end of the federal fiscal year for the voluntary public-private partnership focused on energy efficiency in buildings and appliances. (PoliticoPro, Jan. 8)

State of Play

  • The House passed the minibus on a bipartisan 397–28 vote. The package now heads to the Senate, which is expected to take up the measure as early as next week. (The Hill, Jan. 8)
  • The bill funds the Departments of Energy, Commerce, Interior, and Justice, along with water programs, the Environmental Protection Agency (EPA), and certain federal science initiatives through Sept. 30, the end of the current fiscal year.
  • The package reflects weeks of bicameral negotiations following last month’s deal on overall spending levels.
  • House Appropriations Chair Tom Cole (R- OK) defended the bills as the product of “bipartisan, bicameral consensus” and a member-driven process. (Politico, Jan. 9)
  • The final agreement largely rejected dramatic reductions sought by the White House last spring, opting instead for more targeted spending adjustments to energy and environmental programs. (PoliticoPro, Jan. 8)

Why It Matters

  • ENERGY STAR is a long-standing, market-based program that helps lower energy costs and supports “retrofit” investments for all commercial real estate asset classes.
  • The outcome builds on bipartisan actions last summer, when both House and Senate appropriators separately advanced bills supporting FY’26 ENERGY STAR funding. (Roundtable Weekly, July 25)
  • RER has long urged the “business case” to support the ENERGY STAR program. It is working with a coalition of multi-industry partners in the real estate, manufacturing, consumer tech, and retail sectors to explain to Congress and the administration why ENERGY STAR is critical to the national “energy dominance” agenda. (Roundtable Weekly, June 6; May 23).  

What’s Next

  • The minibus is expected to clear Congress before the current stopgap continuing resolution expires on Jan. 31.
  • Appropriators are preparing additional spending packages later this month, though several major funding bills—including Defense, Labor-HHS-Education, and Homeland Security have yet to be finalized.

These developments, alongside issues related to AI-driven power demand, grid reliability, and permitting reform, will be featured at RER’s upcoming Sustainability Policy Advisory Committee (SPAC) meeting on Jan. 21 in Washington, D.C.

OECD Carves Out U.S. Companies from Global Minimum Tax, Reducing Risk of Retaliatory Taxes on Foreign Real Estate Investors

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After months of negotiations, global tax talks produced an agreement at the Organization for Economic Co-operation and Development (OECD) that exempts U.S.-headquartered companies from Pillar Two’s global minimum tax and reduces the risk of retaliatory taxes that could have affected foreign investment in commercial real estate. (ABCNews, Jan. 6)

State of Play

  • Nearly 150 jurisdictions agreed to new Pillar Two guidance, including a long-sought “side-by-side” safe harbor that shields U.S. multinationals from key global minimum tax rules. U.S. companies will remain subject only to existing U.S. global minimum taxes. (Reuters, Jan. 6)
  • The Trump administration renegotiated the framework in June after congressional Republicans removed a proposed retaliatory tax—Section 899—from the One Big Beautiful Bill Act (OB3 Act).
  • The agreement formally recognizes U.S. tax sovereignty over the worldwide operations of American companies, while preserving other countries’ authority to tax business activity within their borders. (OECD Press Release, Jan. 5)
  • Senate Finance Chairman Mike Crapo and House Ways and Means Chairman Jason Smith praised the outcome but warned that Congress remains prepared to revive retaliatory tax measures if countries delay or fail to implement the agreement. (Sen. Crapo and Rep. Smith Press Release, Jan. 5)
  • They emphasized that Republicans rolled back those measures earlier this year only after the G7 publicly committed to respecting U.S. tax sovereignty—and said that warning “remains today” as implementation begins.
  • Treasury Secretary Scott Bessent called the agreement “a historic victory” that protects American workers and businesses from extraterritorial taxation. (Press Release, Jan. 5)

Why It Matters

  • During negotiations for the OB3 Act, RER and other industry groups warned that Section 899 would deter foreign investment, weaken capital formation, increase borrowing costs, and dampen property values. (Roundtable Weekly, Sept. 12)
  • Section 899 would have generated significant uncertainty for foreign real estate investors, with applicable tax rates potentially shifting year to year or across administrations.
  • The provision would have extended to a wide range of passive investors—including sovereign wealth funds, pension funds, high-net-worth individuals, and insurance companies—with the economic burden often falling on U.S. borrowers under typical loan covenants that shift tax-law risk to domestic parties.

RER’s Tax Policy Advisory Committee (TPAC) will review implications for U.S. real estate investment and global capital flows at the State of the Industry Meeting on Jan. 22, 2026, in Washington, D.C.

Roundtable Urges Second Circuit Court of Appeals to Preserve Employment Tax Exemption for Limited Partners

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The Real Estate Roundtable (RER) filed an amicus brief this week with the Second Circuit Court of Appeals in Soroban Capital Partners LP v. Commissioner, a case that challenges the IRS’s restrictive interpretation of the “limited partner exception” from self-employment (SECA) taxes under section 1402(a)(13) of the tax code. (Amicus Brief, Dec. 15)

Why It Matters

  • Income-producing real estate—rental housing, neighborhood shopping centers, office buildings, etc.—is predominantly owned and operated in partnership form. In 2022, there were over 2.2 million real estate partnerships in the United States, with nearly 9.6 million partners.
  • The Self-Employment Contributions Act (SECA) imposes Social Security and Medicare taxes on net earnings from self-employment. The SECA tax rate on earnings above $250,000 is 3.8%. While the tax applies to a broad range of trade or business income, Congress expressly exempted limited partners from SECA in the Social Security Amendments of 1977.
  • Legislative proposals and proposed regulations have unsuccessfully attempted to extend the 3.8% SECA tax or the 3.8% net investment income tax to limited partners.
  • The IRS has undertaken an aggressive effort to redefine what it means to be a limited partner by challenging taxpayers and litigating the issue in several cases before the Tax Court.

Roundtable View

  • Real estate partnerships have relied for decades on longstanding tax law as it relates to limited partners and the SECA exception.
  • In Soroban and related cases, the Tax Court has imposed a judge-made test and concluded contrary to decades of established state law that a limited partner must be a ‘passive investor,’ notes the RER amicus brief.
  • The Tax Court’s 2023 Soroban ruling wrongly introduced a federal “passivity” requirement that is unmoored from statute, legislative history, and Treasury’s own prior interpretations. However, limited partners have routinely provided business services to their partnerships without losing their limited liability status. (Roundtable Weekly, Sept. 12)
  • “A shift in the federal tax definition of a limited partner could alter underlying partnership economics, increase tax burdens, and create significant uncertainty for real estate and other pass-through businesses,” said RER President and CEO Jeffrey DeBoer. “Such changes need to go through Congress and withstand legislative scrutiny.”

Background

  • RER’s amicus brief was drafted by litigation counsel at Sullivan & Cromwell LLP, in consultation with RER’s Tax Policy Advisory Committee (TPAC). RER also filed an amicus brief in August
    with the First Circuit Court of Appeals in a related case, Denham Capital Management LP v. Commissioner. (Roundtable Weekly, Sept. 12)

Next Steps

The decision in any of the pending cases could have nationwide implications for how partnerships are treated under SECA. A ruling against the Tax Court’s passive investor test would reinforce state law’s central role in defining “limited partner” status.