21st Century ROAD to Housing Act Becomes Law: SFR Implications

The 21st Century ROAD to Housing Act became federal law on July 11.¹ The act, which is intended to address the nation’s housing shortage and affordability, is expected to have a variety of impacts on the housing sector, including institutional single-family rentals (SFR). Earlier this year, KBRA discussed the potential implications of a prior version of the bill (see Institutional SFR Ownership Limits Could Slow Sector Growth).

While the act is not expected to affect existing SFR portfolios in a meaningful way, it could slow the pace of institutional portfolio growth, reshape acquisition strategies toward build-to-rent (BTR) development and other alternative growth channels, and influence the long-term evolution of institutional ownership and future SFR securitization issuance.

This report examines some key provisions…