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Senate Housing Bill Faces Industry Opposition Over 7-Year Build-to-Rent Selloff Rule

Trade groups say a new seven-year sell requirement for build-to-rent would chill investment, jeopardizing support for the package.

Overview

  • A coalition of 42 organizations, including the Mortgage Bankers Association, the Real Estate Roundtable and the National Apartment Association, urged Senate leaders to strike Section 901, which compels large build-to-rent operators to sell homes within seven years.
  • The National Association of Home Builders withdrew support and warned it will consider a key vote in opposition if the selloff mandate remains in the bill.
  • The package pairs a ban on institutional purchases of single-family homes with a carveout for build-to-rent, aligning with a White House priority highlighted by President Trump, though the carveout now includes the seven-year disposal rule.
  • Industry leaders argue the forced-sale provision would deter financing for new communities, risk higher rents and invite constitutional challenges, noting institutional owners account for less than 2% of home purchases.
  • Senators have advanced the measure toward a final vote expected the week of March 9 with broad bipartisan support, as negotiators signal the contested investor language could still change.