Dallas Tanner, chief executive of Invitation Homes, the nation’s largest single-family rental company, stated that legislation banning institutional investors from purchasing existing homes will eventually reduce home prices, though he cautioned against expecting immediate results. He indicated that while the medium- to long-term outlook supports price declines, several other economic factors complicate the near-term picture, including volatile mortgage rates, elevated construction expenses, and ongoing zoning and regulatory obstacles.
President Donald Trump called for the investor ban in early January as part of a broader housing affordability initiative, arguing that corporations should not own residential properties intended for owner-occupants. Supporters of the measure contended that institutional investors were displacing individual homebuyers and driving up prices. The legislation became law in July, restricting investors who own more than 350 homes from purchasing additional existing single-family properties. However, the law permits these investors to acquire newly constructed homes built specifically for rental purposes.
Tanner emphasized that Invitation Homes is shifting its strategy toward developing and acquiring new rental supply. The company has obtained or developed more than 6,000 new homes over the past five years through partnerships with builders. In January, the company acquired homebuilder ResiBuilt and has also purchased homes from major public builders such as Pulte Homes and Lennar for use as rental properties. Simultaneously, the company has been divesting hundreds of older rental homes from its portfolio.
Large institutional investors with more than 1,000 homes represent less than 3% of the single-family rental market nationally, though their concentration in specific metropolitan areas is notably higher. In cities like Atlanta, Jacksonville, and Charlotte, these largest investors control roughly 18% to 25% of single-family rental stock. Invitation Homes reported stronger-than-expected financial results at the end of July despite moderating rent growth and demand compared to pandemic-era levels.
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