Tag: Single-Family Rental (SFR)

RER White Paper Raises Constitutional Concerns With Senate Housing Bill’s Section 901

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The Real Estate Roundtable (RER) this week released a white paper authored by Paul Clement of Clement & Murphy, PLLC, adding significant constitutional concerns to the growing case against Section 901 of Title IX of the Senate-passed 21st Century ROAD to Housing Act (H.R. 6644). While the broader legislation contains several constructive provisions to help boost housing supply, the Senate bill’s restrictions on certain institutional investors would undermine new development, disrupt the build-to-rent (BTR) market, and raise serious legal questions. (White Paper, April 14)

Why It Matters

  • The Senate provision would apply to corporate entities that own more than 350 single-family homes. It would largely prohibit those entities from purchasing additional single-family homes and require them to sell newly constructed single-family rentals (SFR) after seven years.
  • The investor “purchase ban” on single-family homes and the “forced sale” of new single-family rentals would amount to an unprecedented federal intervention in housing markets at a time when the country needs policies that encourage development—not deter it.

What the White Paper Says

  • The white paper released by RER argues that the forced-sale requirement for build-to-rent housing raises serious constitutional problems under the Fifth Amendment’s Takings Clause. (White Paper, April 14)
  • The paper concludes government cannot force one private owner to sell its homes to another without trampling on the Constitution’s “public-use” and “just-compensation” requirements. Furthermore, the Senate’s bill provides no mechanism for the government to pay just compensation to investors whose homes would be taken.
  • The paper also raises equal protection concerns by singling out a narrow category of corporate owners for special burdens.
  • While Congress has broad authority to regulate economic activity, the paper notes that it cannot arbitrarily target a specific class of property owners—particularly where the ownership and disposition of private property are at stake.
  • In addition, the paper argues that the proposal departs from the traditional state and local roles in land use and housing policy, raising broader federalism concerns.

Roundtable Advocacy

  • RER has consistently supported policies that expand housing availability, reduce barriers to development, and improve affordability.
  • At the same time, RER has warned that Section 901 would do the opposite by discouraging new investment in housing and weakening a growing source of supply.
  • RER shared the white paper with members of Congress in a letter urging lawmakers to preserve the bill’s pro-supply provisions while removing Title IX.
  • Since the Senate passed its version of the bill, progressive and conservative groups alike have cited numerous benefits that SFR owners and builders deliver for U.S. housing markets, in terms of increasing supply, maintenance, and upkeep of units, and providing opportunities for families to live in communities with strong education systems, where they can’t afford to buy. (Progressive Policy Institute, February 2026; Competitive Enterprise Institute, February 2026)

  •  As lawmakers work to address the housing shortage, the focus should remain on expanding supply and lowering barriers to development—not on punitive restrictions that threaten new investment, weaken build-to-rent housing, and make affordability challenges worse.

The constitutional concerns surrounding Section 901, and the broader policy debate over how best to expand housing supply, will be part of the discussion at RER’s Spring Roundtable Meeting (Roundtable-level members only) next week in Washington.

Senate Passes ROAD to Housing Act as Industry Urges Changes to BTR Language

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The Senate passed the bipartisan 21st Century ROAD to Housing Act on Thursday in an 89-10 vote, advancing one of the most significant federal housing packages in years and setting up the next phase of negotiations with the House. (Multi-Housing News, March 13 | BisNow, March 12)

State of Play

  • The Senate-passed bill preserves much of the prior ROAD to Housing bill’s framework and includes several provisions intended to boost housing supply. (Politico, March 12)
  • The package would streamline project reviews, raise FHA multifamily loan limits, support manufactured housing, and encourage additional housing development in designated Opportunity Zones. (Roundtable Weekly, March 6)
  • The final Senate text includes Section 901, which would restrict additional single-family home acquisitions by institutional investors defined as entities that directly or indirectly own at least 350 homes. (Multifamily Dive, March 12)
  • It also includes a seven-year forced disposition requirement that would require owners to sell build-to-rent (BTR) homes they develop to another private party or pay an onerous penalty. (PoliticoPro, March 10)
  • Real Estate Roundtable (RER) President and CEO Jeffrey D. DeBoer stated, “RER supports many provisions in the Senate-passed 21st Century ROAD to Housing Act that would help expand housing supply and reduce barriers to homeownership. But the bill’s build-to-rent forced disposition provision would discourage investment in new rental housing and raise serious constitutional concerns. As the House takes up the bill, RER urges lawmakers to remove that language and keep the focus on increasing housing supply and affordability. (NMHC & NAA Statement | NAHB Statement, March 12)
  • RER has warned that the bill’s treatment of BTR housing raises significant concerns under the Fifth Amendment Takings Clause and the Supreme Court’s decision in Kelo v. City of New London. (RER Analysis, March 10 | WSJ, March 9)
  • A federal law compelling one private party to sell property it owns directly to another private party, without government initiation of eminent domain proceedings, would be without precedent.
  • If enacted, the BTR language would almost certainly invite years of constitutional litigation involving property owners, renters, and the federal government.

Congressional Concerns

  • House Financial Services Chairman French Hill (R-AR) called the Senate vote an “important step,” while cautioning that lawmakers still need to “get the details right” and address concerns raised by House members. (Politico, March 12)
  • Sen. Brian Schatz (D-HI) criticized the investor language on the Senate floor, calling it a “drafting error” and warning it could undermine housing production. (Watch Schatz Speech, March 11)
  • “I will stipulate that there are a lot of good things in this bill that are kind of on the pro-housing supply side, but what we are about to do is essentially ban a specific kind of housing,” said Sen. Schatz. (Barrons, March 11 | NBC News, March 12)
  • Sen. Schatz also said the bill could interfere with LIHTC projects, including affordable single-family developments, if the language is not revised.
  • Rep. Mike Flood (R-NE) has also warned that the Senate bill’s BTR provision could “crush an industry” that produces roughly 50,000 homes a year. (PoliticoPro, March 11)

What the Research Shows

  • Analysis has reinforced the concern that restricting institutional capital may do little to improve affordability while creating new supply problems.
  • RER has consistently emphasized that expanding housing supply is the most effective path to improving affordability, as research shows affordability pressures are driven primarily by supply shortages, construction costs, and mortgage rates—not institutional ownership levels. (Roundtable Weekly, Jan. 9 | Jan. 16)
  • Recent analysis from AEI and Cato indicated that driving institutional capital out of housing is unlikely to improve affordability and may instead reduce investment, shrink supply, and leave Treasury with broad discretion over favored and disfavored forms of housing investment. (AEI, March 10 | CATO Institute, March 4)
  • According to analysis by The Pew Charitable Trusts, Section 901 could sharply curtail build-to-rent housing, which has recently added 70,000 to 130,000 homes annually, by undermining the financial viability of those projects, displacing renters, and reducing new single-family construction starts by 100,000 or more homes a year. (Pew, March 10)

RER & Industry Advocacy

  • In March, RER joined a series of coalition letters urging senators to remove or revise Section 901, warning that the seven-year sale requirement would effectively eliminate the production of BTR housing. (PoliticoPro, March 10 | BisNow, March 12; Letter | Bisnow | Politico, March 5; Letter, March 9)
  • This week, RER President and CEO Jeffrey D. DeBoer sent senators an analysis warning that the bill’s forced-sale provision raises serious constitutional concerns and would likely trigger years of litigation. (RER Analysis, March 10)
  • In a letter sent today to House leadership, RER and other national organizations thanked the House for advancing landmark housing legislation while urging lawmakers to amend Section 901 before final passage. (Letter, March 13)
  • The letter warns that the Senate-passed language would effectively eliminate the production of BTR housing and take critically needed new housing units off the table at a time of severe affordability and supply pressures. (Letter, March 13)
  • The coalition also argued that BTR homes expand rental choices for families seeking more space and flexibility, and that forcing providers to sell those homes would displace renters, reduce supply, and undermine the bill’s broader pro-housing goals.

What’s Next

  • The House would need to pass the Senate’s version or convene with the upper chamber to combine the bills into one piece of legislation before it heads to the president’s desk. (Politico, March 12)
  • “If the White House wants the House to pick up the bill and pass it, they’ll probably have to make that argument to the House leadership,” Senate Majority Leader John Thune (R-SD) said Thursday. (Politico, March 12)

RER will continue urging lawmakers to preserve the bill’s pro-supply provisions while removing language that would reduce rental housing production and chill the capital formation needed to address the nation’s housing shortage.

Senate Housing Package Advances as Investor Ban Draws Opposition

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The Senate this week moved forward with the 21st Century ROAD to Housing Act. This sweeping bipartisan package combines House and Senate housing provisions with the Trump administration’s push to restrict large institutional investors from buying single-family homes. (BisNow, March 3 | March 6 | RER Statement, March 4)

State of Play

  • The measure cleared an initial procedural vote, 84-6, after Senate Banking Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) released updated legislative text. A second vote on Wednesday, 90-8, moved the package closer to final action.  (Politico, March 2)
  • The latest Senate text largely preserves the prior ROAD to Housing framework, while adding a new provision to limit additional single-family home purchases by large institutional investors. The bill defines a large institutional investor as a company that owns 350 or more homes and incorporates exemptions, including for build-to-rent housing.
  • The White House said President Trump’s advisers would recommend signing it in its current form. (BisNow, March 3)
  • The broader package also encompasses provisions to streamline reviews for projects, raise FHA multifamily loan limits, support manufactured housing, and encourage additional housing development in Opportunity Zones. (BisNow, March 3)
  • Several senators had not reviewed the updated legislative text before Monday’s vote because it was released shortly beforehand. (Politico, March 2)

Congressional Opposition

  • Sen. Thom Tillis (R-NC) said he was not supportive of the investor provision if it mirrors the administration’s earlier crackdown, warning it would move policymakers “further away from producing affordable housing.”
  • Today, House Financial Services Committee Chair French Hill (R-AR) warned that his chamber is not prepared to support the 21st Century ROAD to Housing Act. “There are members in the House whose provisions and views were not accounted for in the current iteration of the 21st Century ROAD to Housing Act,” Hill said. (Punchbowl News Vault, March 6)
  • Hill is “optimistic” that those concerns can be addressed. Absent that, Hill said “further negotiations, including a possible conference, may be needed.” (Punchbowl News Vault, March 6)

What the Research Shows

  • Analysis has reinforced the concern that restricting institutional capital may do little to improve affordability while creating new supply problems.
  • The Real Estate Roundtable (RER) has consistently emphasized that expanding housing supply is the most effective path to improving affordability, as research shows affordability pressures are driven primarily by supply shortages, construction costs, and mortgage rates—not institutional ownership levels. (Roundtable Weekly, Jan. 9 | Jan. 16)
  • A recent Brookings analysis concluded that banning large institutional purchases of single-family rentals would yield only a very small increase in homes available for purchase, while leading to higher rents for families who need or prefer renting. (Brookings Institute, Feb. 23)
  • The same analysis warned that unexpected limits on investor activity could reduce future capital commitments to the sector and weaken property rights in ways that discourage new supply. (Brookings Institute, Feb. 23)
  • A Cato Institute analysis similarly argued that the proposed Section 901 provision in the bill would give the Treasury Department broad discretion to distinguish among favored and disfavored forms of housing investment. (CATO Institute, March 4)

Industry & RER Advocacy

  • RER and broad housing coalitions have been making the same supply-focused case for weeks. (Roundtable Weekly, Jan. 9 | Jan. 16 |  Jan. 23 | Feb. 27)
  • “On one hand, it undermines the whole idea of the [ROAD to Housing Act] if the purported idea of [the bill] was to help us build more housing and reduce barriers to building, and then you create this legal structure that makes it effectively impossible to build and finance in this very important sector,” said Sharon Wilson Géno, president of National Multifamily Housing Council. (PoliticoPro, March 4)
  • RER member Sean Dobson ( Chairman, CEO and CIO, Amherst) echoed that argument in an op-ed this week, that restricting single-family rental supply does not erase the financial barriers that keep many households from buying; it simply reduces housing options for families who are structurally constrained from homeownership by income, credit, and down payment hurdles. (Fortune, March 5)
  • In a March 5 coalition letter to Senate leaders and the Banking Committee, RER and dozens of national housing organizations warned that Section 901, as drafted, “would effectively eliminate the production of Build-to-Rent (BTR) housing.” (Letter, March 5) (Bisnow, March 5 | Politico, March 5)
  • “It doesn’t prohibit it, but it greatly discourages build-to-rent activities,” RER President & CEO Jeffrey DeBoer told Bisnow in an interview Friday. (Bisnow, March 6)
  • “These projects take years to get through the development process, the zoning process, the funding process,” he added. “Requiring any private business or citizen to sell any kind of asset in a certain time is highly unusual, and I think a lot of people would say it’s unconstitutional.”
  • The letter notes that the bill’s seven-year disposition rule would chill investment across the BTR supply chain, even with nominal exemptions. It urges the Senate to amend the bill to fully exempt BTR housing. (PoliticoPro, March 5)
  • DeBoer also issued a statement earlier this week, following the release of the bill’s updated legislative text, “The Real Estate Roundtable supports many provisions in the ROAD to Housing Act and the Housing for the 21st Century Act, both of which take important steps toward expanding housing supply.  Expanding housing supply requires significant capital investment.  However, the institutional investor provisions under consideration in the Senate bill would be counterproductive. These provisions would discourage the capital investments that are needed to develop, redevelop, and modernize the nation’s owner-occupied and rental housing stock. In particular, the provision to force institutional owners of rental housing to sell the homes that they build within a specified 7-year timeframe would discourage investment in home construction, could actually result in rent increases in many markets, and would no doubt face substantial constitutional challenges. While much of the housing bill now before the Senate is properly focused, the institutional investor provisions should be dropped.” (RER Statement, March 4)

What’s Next

  • The Senate bill still must clear final passage and be reconciled with the House before it can reach the president’s desk. There is speculation that a vote on final passage of the package could happen as early as next week. (PoliticoPro, March 4)

RER will continue advocating for policies that expand housing supply and protect the capital formation needed to build and preserve housing, rather than measures that risk constraining investment without solving the underlying shortage.

Fed Holds Rates Steady as Housing Affordability Pressures Shape Policy Debate

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The Federal Reserve building in Washington, DC

After the Federal Reserve’s Federal Open Market Committee (FOMC) concluded its January meeting on Wednesday by holding rates steady at 3.5 percent to 3.75 percent, President Donald Trump announced today he is nominating former Fed governor Kevin Warsh as the next Fed chair. (Axios, Jan. 30 | CBS News, Jan. 28)

Fed Chair

  • “I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” said Trump in a Truth Social post announcing the selection. (CNBC, Jan. 30)
  • Warsh still needs Senate confirmation and, if approved, would take over in May when Powell’s term expires.

Key Takeaways

  • The FOMC voted 10-2 to maintain rates, with Governors Stephen Miran and Christopher Waller dissenting in favor of an additional quarter-point cut. While most Fed officials still expect further reductions in 2026, Chair Powell emphasized that decisions will remain “data dependent.” (Fed statement, Jan. 28)
  • Fed Chair Jerome Powell said the economic outlook has “clearly improved” since the Committee’s December meeting.
  • Fed Chair Jerome Powell said the economic outlook has “clearly improved” since the Committee’s December meeting.
  • He cited growth and signs of stabilization in the labor market, while emphasizing that policymakers want greater confidence that inflation is moving toward the Fed’s 2 percent target before resuming rate cuts.
  • The U.S. economy grew at a 4.4 percent annual rate in the third quarter of 2025. Chair Powell noted that this performance suggests that interest rates are not currently restrictive enough to materially slow economic activity. (AP, Jan. 28)
  • Inflation remains above target, with the Fed’s preferred measure running near 2.8 percent late last year. Chair Powell acknowledged that recent tariff-related price pressures have lifted goods inflation but suggested those effects are likely temporary and could begin easing later this year. (AP, Jan. 28)
  • The Fed’s decision to hold rates steady reinforces expectations that borrowing costs will remain elevated through at least mid-year.
  • For commercial real estate, sustained higher-for-longer rates continue to place pressure on refinancing, valuations, and transaction activity.

Institutional Investor Legislation Introduced

  • Against this backdrop of a pause in rate cuts and broader concerns about housing affordability, lawmakers have renewed efforts to target institutional participation in the single-family housing market.
  • On Jan. 20, Reps. Summer Lee (D-PA), Ro Khanna (D-CA), Mark Takano (D-CA), and Jill Tokuda (D-HI) reintroduced the Stop Wall Street Landlords Act (H.R. 7138). (Press Release, Jan. 20)
  • The bill would deny mortgage interest, insurance, and depreciation deductions for large institutional investors that own single-family homes and impose a 100 percent federal real estate transfer tax on covered properties that are not sold within 18 months of enactment, with proceeds used to fund the federal Housing Trust Fund.
  • The proposal would also bar the Federal Housing Financial Agency, Fannie Mae, Freddie Mac, and Ginnie Mae from supporting single-family mortgages tied to large institutional investors. (CNBC, Jan. 18)
  • Other legislation aimed at restricting institutional investment in the single family rental market include:
  • Rep. Mary Miller (R-IL) introduced the American Family Housing Act (H.R. 7186), co-sponsored by Rep. Buddy Carter (R-GA), which would direct the SEC to enforce restrictions on large institutional investors (those with more than $100 billion in assets under management) from purchasing single-family homes. Rep. Miller serves on the House Agriculture Committee and Rep. Carter on the House Budget Committee.
  • The debate has taken on added political significance following President Trump’s recent statements and Executive Order on curtailing institutional ownership of single-family homes. (CNBC, Jan. 18 | Roundtable Weekly, Jan. 23)

Looking Ahead

  • Proposals such as the Stop Wall Street Landlords Act risk could further restrict housing supply and access to capital at a time when liquidity and investment are already under pressure.
  • As The Real Estate Roundtable (RER) and partners have emphasized, targeting institutional investment does not address the core drivers of unaffordability: high mortgage rates, rising construction costs, labor shortages, and restrictive zoning that limits housing supply. (Roundtable Weekly, Jan. 9)

RER will continue to engage policymakers about the importance of expanding housing supply, preserving access to capital, and maintaining regulatory flexibility to support long-term stability for the commercial real estate industry and the overall economy.

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.

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.

Coalition Statement on Making Housing More Affordable for Americans

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(WASHINGTON, D.C.) — The United States is facing a housing affordability crisis driven by demand exceeding supply, causing a shortage of all types of housing—homes for sale, homes for rent, apartments, duplexes and others—that has been decades in the making. For too long, families and communities throughout the country have struggled with the high cost of housing.

The undersigned organizations appreciate the Trump Administration’s ongoing commitment to reducing housing costs and broadening housing opportunity by exploring solutions that will expand the number of homes available—the only real solution to housing affordability. While there is no single policy solution, we know it will require public and private partnerships collaborating with communities nationwide to build the housing America needs.

The cost of housing is one of the most critical issues facing many Americans. The only way to lower the cost of mortgages and rent is by encouraging, not hindering, investment and constructing the housing that individuals and families can build lives upon.

President Trump has made increasing housing supply and addressing today’s shortage a top priority, and rental housing providers are the very organizations to partner with to solve our housing affordability challenges.

As a coalition, we urge policymakers of both parties and at all levels of government to embrace solutions that will have the greatest positive impact on housing supply and make a meaningful difference in Americans’ lives by building the housing our nation needs.

We look forward to learning more about the Administration’s housing proposals and partnering with the Administration in developing a national housing policy that will ensure that generations of Americans have the freedom to choose from a wide range of affordable housing options.

Download Statement

Council for Affordable and Rural Housing

Institute of Real Estate Management

Manufactured Housing Institute

NAIOP, Commercial Real Estate Development Association

Nareit

National Association of Housing Cooperatives

National Affordable Housing Management Association

National Apartment Association

National Association of Home Builders

National Leased Housing Association

National Multifamily Housing Council

National Rental Home Council

The Real Estate Roundtable 

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.

RER Statement on Restricting Institutional Investment in Single-Family Housing

Posted on by abigail_grenadier

Statement by Real Estate Roundtable (RER) President and CEO Jeffrey D. DeBoer

(WASHINGTON, D.C.) — “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.

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.”

Housing Policy Updates: Comment Letter to FTC on Single-Family Rental Industry , GSE Considerations, and Tenant Protection Policy Developments

Posted on by Trey Jackson

Housing policy remains at the forefront this week as The Real Estate Roundtable (RER) responded to the Federal Trade Commission’s (FTC) request for public comment on the impact that the large-scale single-family rental (SFR) owner-operators are having on the housing market; the Trump administration continues to explore privatizing Fannie Mae and Freddie Mac; and Federal Housing Finance Agency (FHFA) Director Bill Pulte rescinded a renter protection directive.

Single-Family Rental Housing Study

  • RER and Nareit responded this week to the FTC’s request for public comment  regarding the impact that large-scale Single-Family Rental (SFR) operators and institutional investors are having on home prices and rents in the single-family housing. (Letter)
  • The FTC aims to assess whether “mega investors” influence housing prices negatively.
  • The letter underscores that institutional capital is essential to expanding housing supply and addressing the chronic housing shortage affecting affordability nationwide.
  • As stated in the letter, “Single-family rentals, now part of an institutionally supported asset class, add balance to the U.S. housing market.  SFRs play an important role in the nation’s housing landscape by boosting supply and offering flexible, high-quality housing options that have broad demographic appeal at lower price points compared to home ownership.” 
  • SFR homes constitute only 32 percent of rental units nationally, consistent with historical averages.
  • Institutional investors accounted for a mere 0.3 percent of single-family home purchases in the past year. (BisNow, Feb. 3)
  • The letter emphasized that institutional investors own less than 0.5 percent of U.S. single-family homes, thus not driving the housing affordability crisis.

GSE Reform

  • The Trump administration is actively exploring housing finance reform options, including privatizing Fannie Mae and Freddie Mac. (WSJ, March 23)
  • Recent proposals suggest transferring the Treasury’s stakes to a newly envisioned U.S. sovereign wealth fund. Treasury Secretary Scott Bessent recently discussed this possibility on a podcast, although he provided limited details. (Bloomberg, March 23)
  • Director Bill Pulte and Sec. Bessent have stated that they would like Freddie and Fannie to go private, but not at the cost of disrupting mortgage rates. (Commercial Observer, March 21)
  • An executive order is also under consideration, which could direct federal departments to examine the privatization of Fannie and Freddie.
  • This proposal has drawn substantial attention from housing industry leaders concerned about potential impacts on mortgage markets and affordable housing.

Tenant Protection Policy Rescinded

  • This week, FHFA Director Pulte rescinded a Biden-era directive requiring multifamily housing providers with Fannie Mae or Freddie Mac-backed mortgages to provide renters a 30-day rent increase notice, lease term expirations and a five-day late payment grace period. (GlobeSt, March 26)
  • Pulte contended that this directive increased compliance burdens for lenders and property owners, noting existing state and local regulations already cover lease notices and late fee guidelines.
  • RER along with other national real estate organizations Industry groups such as the National Apartment Association and the National Multifamily Housing Council had opposed the policy, arguing it imposed undue burdens on housing providers. (Bisnow, March 25 | Roundtable Weekly, Jan. 2023)
  • This move aligns with broader industry efforts advocating fewer regulatory constraints to foster housing market stability.

Department of Housing & Urban Development (HUD) Secretary Scott Turner will be a featured speaker at The Roundtable’s Spring Roundtable Meeting on April 8, 2025 (Roundtable-level members only).