In March, the U.S. Senate passed a bill full of tweaks to federal grant programs and regulations. Although nearly all of the bill's provisions are aimed at increasing the housing supply, one would undermine that goal.
That provision, inserted at the last minute, bans investors from owning more than 350 single-family rental homes. Investors could still acquire homes built as rentals, but they would have to be sold off within seven years. Because of these restrictions, the Senate bill, which otherwise could be expected to have a modest positive impact on the housing supply, probably would reduce yearly home construction.
