WASHINGTON, D.C. — The 21st Century ROAD to Housing Act became law without the President's signature on July 11, 2026. The legislation restricts the number of single-family homes large institutional investors can own and imposes new reporting requirements on those entities.

The Senate voted 85-5 to pass the measure, while the House voted 358-32 in favor. The bill passed with bipartisan support from lawmakers including Sen. Elizabeth Warren, Sen. Tim Scott, Rep. Maxine Waters, and Rep. French Hill.

Under the new law, rental home developers must sell homes to homeowners within seven years. Institutional operators are defined as entities owning more than 350 single-family homes. The legislation also streamlines environmental reviews to speed up affordable housing development and makes it cheaper and easier to build manufactured homes.

U.S. Senator Elizabeth Warren criticized the role of large investment firms in the residential market. "These Wall Street types are swooping in to buy up a bunch of single-family homes that should be going to you, to families," Warren said. She argued that individual buyers face significant disadvantages when competing against well-capitalized entities.

"Let’s be honest, most Americans just can’t outbid a Wall Street billionaire private equity firm," she said. She contended that corporate ownership negatively affects tenant experiences and housing stability.

She stated that corporate management practices often harm renters. "Once private equity owns these homes, they become bad landlords," she said. "They raise the rents, charging exorbitant fees, leaving maintenance requests unanswered, and filing unfair evictions."

Data from John Burns Research and Consulting indicates that institutional operators own 0.7% of the 92 million single-family homes in the U.S. These same operators own roughly 5% of all 14 million rental homes in the country. In 2025, institutional operators purchased 1% of the 4.7 million homes bought in the U.S.

An analysis by John Burns Research and Consulting concluded that the bill will decrease new construction. The same analysis concluded that the bill will increase rents. The firm also concluded that the bill will increase home prices.

More than 76 state-level bills targeting corporate landlords were introduced in 2026. Median asking rent across the 50 largest U.S. metros fell 1% year-over-year as of November 2025. This decline marked the 28th consecutive month of year-over-year decrease in those markets.

The enactment of federal restrictions on institutional home ownership occurs alongside broader economic pressures affecting housing affordability. Yale’s Budget Lab estimates federal debt growth has pushed long-term Treasury yields up roughly 97 basis points. This yield increase adds about $2,500 a year to the median mortgage, totaling $76,000 over a 30-year loan. Texas A&M’s Real Estate Research Center calculated a nearly identical figure for the cost impact of federal debt growth on mortgages.

The Bipartisan Policy Center concluded that the national debt has not caused current housing problems. However, the think tank also concluded that continued growth in national debt will make solving housing problems more difficult. The interplay between federal fiscal policy, institutional investment limits, and local rental market trends remains a focal point for policymakers addressing housing supply and cost.

Why It Matters

The legislation establishes a federal precedent for limiting institutional ownership of single-family homes, aligning with over 76 state-level bills introduced in 2026. While proponents argue the measures protect individual buyers from corporate competition, analysis indicates the restrictions could simultaneously decrease new construction while increasing both rents and home prices. These changes occur as median asking rents in major metros have declined for 28 consecutive months, creating a complex landscape for housing affordability.