New Law Bars Largest Investors From Buying More Single-Family Homes but Leaves Existing Holdings Intact

The 21st Century Road to Housing Act took effect Saturday, barring institutional investors that own 350 or more single-family homes from purchasing additional properties. Cnn reported that the measure was added after President Donald Trump signed an executive order directing action to stop Wall Street from competing with Main Street homebuyers.

The law does not require those investors to sell any existing holdings.

President Donald Trump called the 21st Century Road to Housing Act a “big yawn” and declined to sign it after Congress passed the measure. It became law automatically without his signature. Lawmakers from both parties had supported the limit on the largest investors.

Large institutional investors own 0.66 percent of the nation’s single-family homes, according to property data firm Cotality. Their holdings are concentrated in a few Sun Belt markets. In Atlanta, they control about 4 percent of single-family housing stock overall and roughly one in seven homes in some neighborhoods, Cnn reported.

com report found. The largest corporate landlords, including Tricon, are listing more homes for sale than they are buying in major cities, according to Parcl Labs. Institutional investors began buying single-family homes at scale after the 2008 financial crisis, when firms such as Blackstone acquired thousands at discounted prices.

Their activity increased again when mortgage rates reached record lows during the pandemic. A 2024 Government Accountability Office report found that these investors may have contributed to rising home prices and rents after the crisis. Michael Seiler, a professor of real estate and finance at William & Mary, said the provision is more likely to help at the margin.