Built to rent communities have become one of the fastest growing segments in housing.

Those are neighborhoods of single-family homes built specifically as rentals.

They are often owned by institutional investors instead of individual landlords.

They're kind of like a horizontal apartment.

And now, Washington is debating whether those investors should be forced to sell.

I'm Kathy Fedke, and this is Real Estate News for Investors.

This is Real Estate News with Kathy Fedke.

House Republicans are now moving closer to a compromise on the 21st century Road to Housing Act. And one of the biggest

changes could be welcome news for investors involved in build-to-rent housing. A new version of the

bill removes a controversial requirement that would have forced institutional build-to-rent investors

to sell their properties after seven years. That rule had been added by the

Senate and quickly became one of the biggest ticking points in the House. By stripping that language,

lawmakers may finally have a path forward on this broader housing package. But investors should

know the rest of the restrictions are still very much alive.

Under the latest house version, institutional investors that already own more than 350 single-family homes would be prohibited from buying additional homes.

Civil penalties could apply for violations, with enforcement handled by the U.S. Treasury.

At the same time, the data suggests large institutional investors represent a much smaller share of the housing market than many headlines might imply.

Research from Realtor.com economist Jake Crimmel found that firms that have purchased more than 350 single-family

homes since 2015 account for just 1% of total single-family home purchases nationwide.

At their peak, those firms represented about 16% of all investor purchase activity between 2015 and 2025. So while institutional investors often dominate

the conversation, their footprint in the broader housing market is actually pretty small.

The house also made another important change for investors who buy distressed properties,

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