The American housing market continues to face major challenges, including affordability issues, low housing supply, changing interest rates, and growing investor activity. Adding to the conversation, President Trump signed an Executive Order on January 20, 2026, targeting large institutional investors involved in buying and renting single-family homes. The policy aims to reduce housing speculation, but notably excludes build-to-rent (BTR) developments from restrictions.
This distinction is important because scattered-site single-family rentals (SFR) and build-to-rent communities operate very differently. Scattered-site SFR involves investors purchasing individual homes across existing neighborhoods, a practice critics say reduces opportunities for homeownership. Build-to-rent, however, focuses on developing entirely new rental communities, helping increase housing supply rather than competing with homebuyers for existing homes.
Despite public concerns about institutional investors dominating the market, data shows otherwise. According to Redfin and CBRE, large institutional investors own less than 2% of single-family rental properties in the U.S., while most are still owned by small landlords. At the same time, BTR developments have seen significant growth since the pandemic, signaling strong investor confidence and increasing demand for rental housing.
For investors, BTR presents several strategic opportunities, including partnering with developers, financing projects, acquiring completed communities, or building dedicated homebuilding operations. Compared to traditional rental models, BTR offers operational efficiencies, strong renter demand, and long-term growth potential.
As housing policies continue to evolve, build-to-rent is emerging as a more sustainable and politically acceptable investment strategy. Rather than limiting housing access, BTR helps expand supply while meeting the growing demand for quality rental homes. In today's shifting real estate landscape, build-to-rent may not just be a trend—it could become the future of single-family housing investment.
Source: The National Law Review
