Here’s How the New 21st Century ROAD to Housing Act Could Help Real Estate Investors

Although the recently passed 21st Century ROAD to Housing Act is primarily aimed at first-time homebuyers, it also benefits investors when applied correctly. The changes might not be immediate, but when viewed through a wider lens, the introduction of small-dollar mortgages, new FHA limits, encouraging more “missing middle” construction, and limiting purchases of single-family homes by institutional investors could reshape the investor playing field over the next decade. Tackling the Housing Shortage The law’s core goal, according to Fortune, is to address the housing shortage, which currently ranges from 3.7 million homes (Freddie Mac) to at least 10 million homes (the White House), and to address more than a decade of underbuilding following the 2008 financial crash. The new law tries to address this from multiple fronts: streamlining regulations, incentivizing local zoning reform, easing access to mortgages through community banks and FHA updates, and preventing large corporations from swallowing up large swaths of single-family homes. Why This Matters for Mom-and-Pop Investors While average homebuyers have sat on the sidelines the past few years, investors have been busy buying...