The Senate’s 21st Century ROAD to Housing Act, passed on March 12, 2026, includes a provision that would require owners of build-to-rent portfolios with more than 350 units developed after enactment to dispose of those assets within seven years, with a potential ten-year window if a rental agreement is in place.
Build-to-rent (BTR) refers to newly built, purpose-built single-family homes designed for rental. Unlike scattered-site rentals, BTR communities are cohesive, professionally managed neighborhoods with shared amenities and uniform infrastructure, delivering tens of thousands of units each year in markets with high demand.
Industry advocates warn that forced disposition could destabilize BTR operations, jeopardize bulk contracts for amenities and technology, and make it harder to sell current BTR properties. The result could be reduced supply, higher rents in already tight markets, and displacing renters who cannot buy the homes they occupy.
Rental housing economist Jay Parsons has criticized the approach, calling it an “effective ban” on build-to-rent construction that may chill investment and hinder affordability goals.
In response, a broad coalition of housing and real estate groups urged lawmakers to exempt BTR from the bill, arguing that BTR adds new housing supply and expands options for renters across income levels. The signatories—including NMHC, NAA, NHC, NAHB, MBA, Nareit, IREM, CRE Finance Council, NAHMA, NLHA, The Real Estate Roundtable, Leading Builders of America, and the Affordable Housing Tax Credit Coalition—assert that the policy should support, not suppress, the growth of build-to-rent housing.
