Policy reset, then a thaw
First came an executive order in January from President Donald Trump to make it harder for investors to benefit from federal help when buying homes. Then in July, lawmakers passed the 21st Century Road to Housing Act, which set new curbs on very large landlords - those holding more than 350 properties - and, after some back and forth, explicitly left build‑to‑rent out of those limits.
That clarity seems to be loosening up dealmaking. Big build‑to‑rent players said activity went quiet earlier in the year while Washington debated the details. With the law now on the books, they are seeing more willingness to transact.
What the data is showing
Realtor.com found that mom‑and‑pop buyers still dominate the investor universe, though big investors are clustered in certain large metros where they hold meaningful slices of the housing stock.
Rising borrowing costs are part of the story. Realtor.com economist Hannah Jones said higher mortgage rates have pushed some individual buyers to the sidelines, which may lift the investor share. "Investors, especially institutional ones, are less reliant on financing and more often pay in cash, which could nudge the institutional investor share higher as the surrounding market contracts," Jones said. "It's also possible that institutional activity slowed while policy was unclear and in flux, and that these investors have returned now that it's settled."
The latest Realtor.com investor read shows the investor share of home sales ticked up to 11.3% in 2025, a 0.3 percentage point increase from the prior year. Overall, investors bought 534,000 homes, while the typical investor outlay rose by 5.6%.
A Government Accountability Office snapshot right after the bill became law highlighted rapid investor portfolio growth in places like Dallas and Phoenix, especially from 2020 through 2023, before momentum cooled in 2024. Cotality's tracking does not pinpoint which cities are seeing renewed buying. As for what comes next, Jones said, "In the coming months, transaction volume will be important to watch. It should show whether institutional activity is truly growing or whether the rest of the market is simply shrinking around them while they continue to compete." Realtor.com plans to publish a deeper investor report later this month.
How the big landlords are navigating
The new law delivered certainty for larger buyers and gave them room to combine existing rental portfolios, according to Bryan Smith, CEO of American Homes 4 Rent, who spoke to analysts in August. "As most everyone knows, the consolidation environment this year was really on pause with all the legislation and the attention from Washington," he said.
"There were a couple of deals that closed in January. And then, it really was in a little bit of a wait‑and‑see. Post‑legislation, we've seen a little bit more activity. There are some deals that are coming." Demand, he added, remains "healthy," though he cautioned that mid‑sized investors could find it tougher to add homes while agencies work out the specifics of the restrictions.
Dallas Tanner, president and CEO of Invitation Homes, told investors that capital for transactions was "relatively stagnant over the first six months of 2026, thanks to the legislative uncertainty." With the law now set, he said, "more sellers are coming to market," including "some attractive smaller portfolios." His take: "It's still early, but encouraging."
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Some capital also drifted toward apartments. Ivan Barratt, CEO of Indiana‑based BAM Capital, said the single‑family limits have pushed more attention to multifamily. BAM has acquired 10,000 apartments over the last decade, and Barratt does not see renters losing interest.
With first‑time buyers trending older, people rent longer and want more space and upgrades. He said owners that operate portfolios spanning multifamily and single‑family rentals can stay ahead of those renter preferences by investing in amenities and upgrades. As Barratt put it, "A first‑time homebuyer is going to be dropping a $1,000 or $2,000 expense out of pocket, and so renting can feel more like a home where everything's taken care of."
Build‑to‑rent's outlook
An earlier draft of the housing bill would have swept build‑to‑rent into the penalties for institutional buyers. The final law did not. This niche grew quickly during the COVID‑19 period and, per the National Apartment Association, reached a high point at more than 122,000 housing starts in early 2024.
By August, the National Association of Home Builders counted 15,000 build‑to‑rent starts in the second quarter, down from 18,000 in the same quarter of 2025, with occupancy at 92.6%. NAHB and other groups argued that build‑to‑rent adds supply and pushed to keep it out of the law's penalties.
Financing slowed sharply while Congress debated the bill, said Kelli Lawrence, CEO of Indianapolis‑based Onyx+East. She said funding has since begun to flow again. Onyx+East has entered the Columbus, OH, market, launching a 23‑unit build‑to‑rent project.
Lawrence said that in markets such as Columbus, demand ranges from graduate students headed to school, to people moving for jobs, to downsizers seeking space and flexibility. "The long‑term demand and need never went anywhere," she said. "So it was just a matter of educating lawmakers and who we are and what we do."
What this means for your money
If you are watching housing from the sidelines, the takeaway is simple: policy uncertainty froze a lot of deals, and clarity is helping them unstick. What is not yet clear is whether the big buyers are actually ramping up purchases or just taking a larger slice of a smaller pie as other buyers retreat. The exact implementation rules are still being written, and transaction volumes in the next few months will tell you more.
For anyone tracking single‑family and build‑to‑rent, more color is coming soon with Realtor.com's investor report and hints of fresh portfolios coming to market. If demand stays "healthy" and funding keeps loosening, the rental side of housing may keep drawing capital - which shapes everything from local inventory to the rents you or your neighbors pay.
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