If Wall Street Gets the Boot

Rising populism threatens to end institutional SFR as we know it. What happens next and who are the likely winners and losers?

Single-family rentals have been one of the fastest-growing real estate sectors of the past decade. But political pressure is putting the future of the category in jeopardy.

Over the past year, a series of bills have been introduced that would seriously restrict institutional investors’ ability to buy single-family homes. While the particular federal legislation introduced is unlikely to pass in this Congress, rising populism as well as frustration with home prices on both sides of the aisle raise the probability that something will happen sooner rather than later—through individual state legislatures if not at the federal level. And unlike the multifamily or office sectors, SFR doesn’t have an established lobbying presence or organizing power to fight back.

Today’s letter will explore the implications of a possible crackdown on Wall Street involvement in buying and renting single-family homes. Specifically, we’ll tackle:

• The potential contours of new regulation;

• Models and businesses facing threats from a pending crackdown;

• Proptech companies and investment sectors that may benefit;

• Macro impact on the single-family sector.