March 30, 2026
The proposed 21st Century ROAD to Housing Act is designed to tackle housing affordability, but early analysis suggests it may unintentionally push costs even higher.
One of the most debated provisions is the requirement for build-to-rent (BTR) developers to sell homes within seven years. While intended to encourage homeownership, this rule could significantly disrupt how these communities are financed and operated. BTR projects are typically built and managed as long-term rental communities, and a forced sale timeline may discourage developers and investors from building them altogether.
The result? Fewer new homes. With housing supply already under pressure, any slowdown in construction could tighten the market further—leading to higher rents and rising home prices.
The bill also targets institutional investors, defined as those owning more than 350 homes. However, data shows these investors make up a very small share of the overall housing market and account for only a fraction of recent home purchases. Limiting their activity is unlikely to meaningfully improve affordability, while potentially reducing capital that helps fund new housing development.
Meanwhile, demand for build-to-rent housing continues to grow. Many renters—ranging from young professionals to families—choose BTR for its flexibility, lower maintenance, and access to quality neighborhoods and schools. For some, it's a practical step while saving for a down payment; for others, it's a preferred lifestyle. Reducing this option could leave many renters with fewer choices.
Ultimately, the biggest drivers of housing affordability—limited supply, high construction costs, elevated mortgage rates, and barriers to homeownership—remain largely unaddressed in the bill. While the goal is to expand access to affordable housing, the proposed measures could have the opposite effect: slowing development, reducing supply, and increasing costs for both renters and buyers.
Source: John Burns
