Ban on institutional homebuyers could cool prices over time
A July law restricting institutional buyers from purchasing existing homes to rent could lower home prices in the medium-to-long term, but near-term prices may stay elevated due to mortgage-rate volatility, high construction costs, and zoning/regulatory hurdles. Invitation Homes says its strategy now focuses on creating new rental supply—via builder partnerships and acquisitions like ResiBuilt—while selling older rentals. Although the largest investors still account for a small share of the market, they have outsized influence in select metros like Atlanta and Jacksonville.