Lessors of Residential Buildings NAICS 531110

Mar 20, 2026 - Senate Moves to Limit Large Investor Ownership of Single-Family Homes

• A bipartisan Senate housing proposal aims to boost homeownership by requiring large single-family rental investors to sell newly built homes to individuals within seven years, a move that has drawn strong opposition from builders and investors, according to The Wall Street Journal. Industry groups warn that the provision could disrupt the build-to-rent model, reduce access to financing, and ultimately limit new housing construction, which analysts say could worsen affordability and push rents and home prices higher. Supporters argue the policy would increase homeownership opportunities and curb competition from institutional buyers, which accounted for more than 20% of home purchases in some markets during the pandemic. The measure is part of a broader housing package under consideration, though differences with a House version could delay passage. If enacted, the policy could significantly reshape investment strategies and housing supply across the residential market.
• Multifamily Dive reports that multifamily loan performance improved modestly in February, though stress remains elevated across commercial real estate, according to Trepp. The multifamily delinquency rate fell to 6.85%, down nine basis points from the prior month and below its 7.12% peak in October 2025, but still higher than 4.46% a year earlier. At the same time, the multifamily special servicing rate rose to 8.3%, indicating ongoing pressure from loans originated during the low-rate period. Analysts suggest distress risks persist, particularly for lower-quality multifamily assets in select markets, as higher borrowing costs and prior overleveraging continue to weigh on property performance despite some easing in interest rates.

• In the fourth quarter of 2025, there were about 15,000 single-family built-for-rent (SFBFR) housing starts in the US, down slightly from the 16,000 built in Q4 2024, according to the National Association of Home Builders' analysis of US Census Bureau data. In 2025, 68,000 SFBFR homes began construction, down 19% from 2024. While the historical four-quarter moving average market share for SFBFR is about 2.7% (1992-2012), SFBFR’s current share of the overall single-family market is about 7%. Single-family built-for-rent homes provide an alternative for consumers who want more space but are challenged by a lack of affordable housing inventory and downpayment requirements in the for-sale market. Legislation recently passed by the US Senate would require single-family rental housing to be sold to individual home buyers within 7 years. The NAHB estimates that, if passed, the legislation could reduce housing supply by putting 40,000 SFBFR units at risk per year.
• Multifamily apartment sales activity declined in January 2025, with transaction volume falling 25% year over year to $8 billion, according to data from MSCI Real Assets reported by Multifamily Dive. Declines were seen across all property types, including a 39% drop in mid- and high-rise deals to $2.7 billion and a 15% decrease in garden-style transactions to $5.3 billion, while entity-level deals fell 64% to $0.6 billion. Despite lower deal volume, prices were relatively stable, slipping just 0.1% year over year, with recent monthly gains indicating improving momentum. Industry participants cited market volatility and cautious investor behavior as factors behind reduced activity. However, Multifamily Dive reported that institutional investors are becoming more active, and large pending transactions could help drive a rebound in sales volume later in 2026.