The Treasury proposed regulations implementing Section 1001 of the 21st Century ROAD to Housing Act, which restricts large institutional investors from purchasing single-family homes and codifies requirements of Executive Order 14376. A large institutional investor is defined in part by being in the business of investing in, owning, renting, managing or holding single-family homes with direct or indirect investment control over at least 350 such homes, and from January 7, 2027 such an investor generally may not buy a single-family home unless the purchase is an excepted purchase.
The excepted categories include build-to-rent programs, renovate-to-rent programs that bring neglected homes back into supply and up to code, and homeownership programs, and the proposal sets safe harbors for each, including a right of first refusal and a 30-day first-look period for renters in qualifying programs. Treasury Secretary Scott Bessent said the rules aim to give families a fair shot at purchasing homes in their communities while avoiding unnecessary disruption to housing supply, and comments on the proposal are due within 30 days after publication in the Federal Register.