CMBS Weekly: Mostly Positive View of Housing Act

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CMBS Weekly: Mostly Positive View of Housing Act

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26 Jun 2026 16:07:02 ET │ 25 pages

CMBS Weekly

Mostly Positive View of Housing Act

CITI'S TAKE

Jeffrey Berenbaum AC

This week, Congress passed the “21st Century ROAD to Housing Act,” which +1-212-816-8399

is set to become law after 10 days barring a presidential veto. The legislation jeffrey.s.berenbaum@citi.com

introduces several changes, such as banning large-scale investment in

single-family rentals, providing incentives for local municipalities to build Aditi Memani

new homes, expanding the definition of manufactured housing, and +1212-723-9356

modernizing federal housing programs. The bottom line is that we expect: 1) aditi.memani@citi.com

CRE CLO, and to a lesser degree SASB, to benefit from investments in build-

to-rent and multifamily sectors that otherwise would have gone to single-

family rental; 2) growth of manufactured housing loan supply in agency and

non-agency deals; and 3) growth in the GNMA PL sector as FHA multifamily

loan limits increase.

Curbs Placed on Buyers of SFR — The Act bans large investors—entities controlling

350 or more single-family homes—from purchasing additional properties, directing

future capital towards exceptions like new build-to-rent (BTR) construction,

substantial rehabilitation, and programs that facilitate homeownership. This likely

accelerates growth of the BTR sector and creates opportunities focused on value-

add strategies through heavy renovation.

MH Gets an Overhaul — The Act aims to increase affordable housing supply by

expanding the definition and financial support for factory-built homes. By

streamlining financing for modular construction and offering new incentives

through increased loan limits and grants, the bill creates a significant opportunity