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Create Free AccountThe US Senate has passed the ROAD Act, a legislative move designed to limit large institutional investors from acquiring single-family rental properties. While the bill aims to reduce corporate competition for individual homebuyers and improve affordability, market experts have voiced significant concerns regarding its long-term effects. Critics argue that restricting institutional capital could inadvertently lead to a decline in new home construction, further straining an already tight housing market. This potential supply shortage may ultimately drive up both home prices and rental costs, counteracting the bill's primary objectives. Consequently, the legislation is expected to impact major real estate investment trusts like INVH and AMH, as well as homebuilder ETFs such as ITB and XHB.