DALLAS — A new federal housing law set to take effect Friday will impose new limits on large institutional investors in residential real estate, affecting markets across the country, including Dallas-Fort Worth, which leads all U.S. metropolitan areas in investor home purchases.
The 21st Century ROAD to Housing Act is designed to address housing affordability by introducing regulations on large-scale investors that have become increasingly active in the housing market.
Dallas-Fort Worth has experienced sustained population growth and home demand, making it an attractive market for institutional investors, according to Hannah Jones, a senior economic research analyst at Realtor.com.
Jones said investors, particularly large firms, have focused on Southern markets such as Dallas because of relatively affordable housing inventory and the potential for strong returns through rental properties.
Lawmakers debated the role of institutional investors throughout consideration of the legislation, with supporters arguing that increased oversight could help improve access to homeownership for individual buyers in highly competitive housing markets.
President Donald Trump said he would not veto the measure, clearing the way for the bill to become law Friday.
