The U.S. government's new 21st Century ROAD to Housing Act aims to limit institutional ownership of single-family homes, with lawmakers arguing that large corporate landlords have made homeownership less affordable by outbidding individual buyers and raising rents.
However, housing researchers say the policy may have unintended consequences. According to John Burns Research and Consulting, institutional investors own just 0.7% of U.S. single-family homes, about 5% of rental homes, and accounted for only 1% of home purchases in 2025, suggesting they play a relatively small role in the broader housing market.
Analysts note that institutional investors are also key backers of build-to-rent communities, providing developers with capital to build more single-family rental homes. Limiting their participation could slow new construction, reduce rental supply, and ultimately push both rents and home prices higher.
Economists also point to broader factors behind housing affordability, including higher mortgage rates driven by growing federal debt, arguing these have had a greater impact on buyers than institutional ownership.
For Gen Z renters, the outlook is mixed. Apartment rents have eased as more multifamily housing has come online, but single-family rental prices continue to rise across most major U.S. cities. Researchers warn that restricting investment in this segment could further tighten supply and increase costs for renters looking for larger homes.
While the new law is intended to improve housing affordability, experts say its long-term success will depend on whether it expands homeownership without reducing the supply of rental housing.
Source: Fortune
