KBRA Releases Research – 21st Century ROAD to Housing Act Becomes Law: SFR Implications

KBRA Releases Research – 21st Century ROAD to Housing Act Becomes Law: SFR Implications

KBRA releases research analyzing the 21st Century ROAD to Housing Act, which became federal law on July 11. The act, which is intended to address the nation’s housing shortage and affordability, is expected to have a variety of impacts on the housing sector, including institutional single-family rentals (SFR). Earlier this year, KBRA discussed the potential implications of a prior version of the bill (see Institutional SFR Ownership Limits Could Slow Sector Growth).

While the act is not expected to affect existing SFR portfolios in a meaningful way, it could slow the pace of institutional portfolio growth, reshape acquisition strategies toward build-to-rent (BTR) development and other alternative growth channels, and influence the long-term evolution of institutional ownership and future SFR securitization issuance.

This report examines some key provisions of the act and their implications for the institutional SFR sector and related securitizations.

Key Takeaways