In 2026, the Trump administration and Congress have placed a significant emphasis on expanding access to homeownership for individuals and families, with a particular focus on limiting the role of large institutional investors in the single-family housing market. As discussed in our January 2026 GT Alert, President Trump signed an executive order declaring that large institutional investors should not compete with homebuyers for single-family homes. Building on that policy direction, on March 12, 2026, the U.S. Senate passed the 21st Century ROAD to Housing Act (“the Act”), which, among other housing-related reforms, includes a prohibition on the purchase of single-family homes by large institutional investors, subject to a number of defined exceptions. The U.S. House of Representatives previously passed its own version of the bill on Feb. 9, 2026, and it contained none of the institutional investor provisions included in the Senate bill. Key House members have expressed opposition to the Senate provisions described below. The two chambers are currently involved in informal discussions to resolve differences between their respective versions of the legislation. This GT Alert details the key provisions of the Act as passed by the Senate, with a particular focus on the institutional investor restrictions.
Key Definitions
The Act would establish a prohibition on the purchase of single-family homes by large institutional investors. Three key terms from the Act are described below:
- “Large institutional investor” – an investment fund, corporation, general or limited partnership, limited liability company, joint venture, association, or other for-profit legal entity that: (i) is engaged, in whole or in part, in the business of investing in, owning, renting, managing, or holding single-family homes; and (ii) alone or in concert with one or more other entities, beginning after the date of enactment of the Act, directly or indirectly has investment control of not less than 350 single-family homes in the aggregate, not including any single-family home purchased in an excepted purchase” made after the date of enactment.
- “Purchase” – broadly defined to include any purchase, transfer, or other acquisition of a single-family home, including through mergers, acquisitions, construction, foreclosures, or bulk purchases, whether or not for cash consideration.
- “Single-Family Home” – a structure that contains two or fewer dwelling units, each intended for residential occupancy by a single household. The definition excludes manufactured homes as defined under the National Manufactured Housing Construction and Safety Standards Act of 1974.
Exceptions
Not all purchases by large institutional investors would be prohibited. The Act carves out specific categories of “excepted purchases.” Some of these exceptions include a condition requiring the investor to sell the home to an individual homebuyer within seven years. Others do not have a resale requirement but may carry different obligations.
Exceptions Subject to the 7-Year Resale Requirement
The following purchases are permitted but require the investor to dispose of the home to an individual homebuyer within seven years of the date of purchase:
- Newly Constructed, Renovated, or Rental Conversion Homes for Sale (Subparagraph A): Purchases of newly constructed, renovated, or rental conversion homes for sale, provided the home is not rented pending sale.
- Build-to-Rent Programs (Subparagraph B): Purchases of newly constructed homes to be managed as rental properties under a build-to-rent program.
- Renovate-to-Rent Programs (Subparagraph C): Purchases under a renovate-to-rent program.
- Age-Restricted Communities (Subparagraph J): Purchases of homes intended for communities where one or more household members are aged 55 or older.
Where a home acquired under one of the above exceptions is subsequently transferred to another large institutional investor under a different exception, the original seven-year clock would continue to run and would not be reset or extinguished by the subsequent transfer.
Exceptions Not Subject to the 7-Year Resale Requirement
The following purchases would be permitted without a resale obligation, though certain exceptions would carry their own restrictions:
- Homeownership Programs (Subparagraph D): Purchases pursuant to a qualifying homeownership program that includes rent-to-own features, opt-in positive rent reporting to consumer reporting agencies, and meaningful financial support from the investor toward the renter’s purchase of the home.
- Programs to Boost Homeownership (Subparagraph E): Purchases under a qualifying program that includes opt-in positive rent reporting, a right of first refusal, and a 30-day “first look” period for the renter.
- Purchases from Other Large Institutional Investors (Subparagraph H): Purchases from another large institutional investor that owned the home on the date of enactment or purchased it in compliance with the Act.
- Purchases from Non-Covered Investors Within Two Years of the Effective Date (Subparagraph I): Purchases from an investor not covered under the Act, provided the purchase occurs within two years of the effective date.
Looking Ahead
The Act would apply only to purchases made after the effective date, which is 180 days after enactment. Accordingly, the Act would not require investors to divest homes purchased before enactment.
The Act passed the Senate and remains under consideration in the House of Representatives; its final form may differ from what is described above.