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ROAD Act limits large institutional purchases of single-family homes
The law took effect July 11, barring investors owning or controlling at least 350 homes from making additional acquisitions, with carve-outs for build-to-rent and renovate-to-rent.
HousingWire reports that the 21st Century ROAD to Housing Act became law after President Donald Trump neither signed nor vetoed the bill within the constitutionally required 10-day window, and it took effect July 11 without his signature.
The measure restricts large institutional investors that own or control at least 350 single-family homes from buying additional properties. The prohibition applies broadly to acquisitions, including purchases, transfers, mergers, and bulk acquisitions, but it does not require companies to sell homes they already owned before the law took effect.
The act includes exceptions allowing covered investors to continue acquiring newly constructed homes through build-to-rent developments, as well as homes obtained through renovate-to-rent programs that involve substantial rehabilitation. Other carve-outs cover homes purchased under qualifying lease-to-own and homeownership initiatives, acquisitions through foreclosure or other loss-mitigation activities, certain age-restricted housing communities, and specified transactions involving homes already owned by other institutional investors.
HousingWire also notes the law responds to a January executive order from Trump that directed federal agencies to limit the role of large institutional investors in the single-family housing market, with the ROAD Act establishing statutory limits on future purchases rather than restricting only the use of federal housing programs.