Residential Building Contractors NAICS 2361

Mar 18, 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.
• Single-family housing starts fell 2.8% month over month and 6.5% year over year in January. The Census Bureau report was delayed by the government shutdown late last year. The number of building permits issued for single-family, privately-owned housing units fell 0.9% month-over-month and dropped 11.6% year-over-year in January 2026. Homebuilders have faced several headwinds, including tariffs that have increased the cost of key inputs like lumber and cabinets, and labor shortages, according to Reuters. While interest rates have fallen in 2026, the US war with Iran is pushing oil prices higher, along with US Treasury yields. Mortgage rates could begin to rise again because they are tied to the benchmark 10-year Treasury yield.

• Home builder confidence in the single-family market rose slightly in March, but builders remain concerned about housing affordability, higher construction costs, and shortages of buildable lots and labor, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose one point to 38 in March 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 37% of builders reduced home prices in March to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from February. While the war in Iran and resulting higher oil prices could pose additional challenges, recent executive orders by President Trump aimed at reducing regulatory hurdles to homebuilding are seen as a positive step.
• The rapid expansion of data center development driven by artificial intelligence is reshaping land markets and creating new challenges for the home building industry, according to The Wall Street Journal. Tech companies are outbidding residential developers for land, making housing projects less financially viable. In Northern Virginia, data centers accounted for 20% to 30% of land development from 2013 to 2021, with activity from 2022 to 2024 rising 50% above the prior nine years. Rising land costs, limited available sites, and competition for labor and materials are constraining new housing supply. Builders say elevated prices make projects difficult to justify, contributing to shortages that already exceed 75,000 homes in some regions and pushing affordability further out of reach for many buyers.