Single-Family Rental Ban Update
March 10, 2026
The Senate is continuing its debate on a comprehensive housing supply bill amid mounting criticism on a provision that would force sales of new build-to-rent (BTR) properties.
Why it matters: As we’ve previously covered, the latest Senate housing bill H.R. 6644 includes a ban on large institutional investors purchasing single family homes to rent out.
- BTR Forced Sale: Legislative text released last week would mandate that any new BTR owned by an institutional investor would need to be sold to consumers within 7 years.
- Institutional Investor: Large institutional investors would be defined as for-profit entities holding 350 or more single-family homes (not including exceptions in the legislation).
- Single-Family: A single-family home is defined as “means a structure that contains 2 or fewer dwelling units that are each intended for residential occupancy by a single household” and not a manufactured home. There are no references to tax parcels in the definition.
What they’re saying: CREFC and other real estate organization have opposed the large institutional investor limitation as it would significantly expand federal regulation on housing and create unintended consequences.
- The National Association of Homebuilders announced it would oppose the broader legislation unless and until the BTR provision was fixed, saying the bill would have a negative effect on housing supply.
- The National Association of Realtors, however, is supporting the legislation despite the BTR provision.
- House Republican leaders, including Financial Services Committee Chairman French Hill (R-AR), have warned the bill may need changes to pass muster among the House GOP.
- Some are calling for a conference committee to negotiate changes after Senate passage. The White House remains supportive of the legislation as drafted.
What’s next: CREFC continues to educate lawmakers on the potential impact of the BTR language and the broader SFR legislation. The House is out this week and will be pressured to act quickly should the Senate approve the legislation.
Contact David McCarthy (dmccarthy@crefc.org) with questions.