By Mike Bodeen · 13 July 2026
Could Have Been Better, But It’s Better than Not
The ROAD Act became law this last Saturday after President Trump refused to sign it. After years of formulating the Act, Congress, with both Republicans and Democrats working on it, plus the National Association of Realtors, the National Association of Home Builders, and many other public and private entities, collaborated to bring it about.
The provisions of this act are intended to encourage planning to develop more housing at the affordable end of the market. This will not be a quick fix.
In the original version of the bill there were numerous provisions, some that seemed to make sense and others that could have caused institutional investors who currently hold hundreds of thousands of rental properties to quickly liquidate their properties. This would have had the effect of many lower end homes coming onto the market, which for sure would have created a glut of housing supply, with a deep drop in prices, not to mention a wave of new foreclosures. Talk about a pendulum swing.
The Cromford Report further details what was left out of the bill:
no ban on build-to-rent developments
no requirement for institutional investors to sell their existing properties
no ban on institutional investors buying new builds
no forced sale of build-to-rent properties after 7 years
no ban on institutional investors buying and selling to each other
under some circumstances, institutions are still permitted to buy to renovate and rent
institutions can buy resale homes if they have established rent-to-own schemes for residents
“…our government/country came together to formulate a much-needed plan for the American people. Right or wrong, it was a refreshing change of pace.”
It’s no secret that the wave of new home construction, especially in Arizona, has majored on the “apartment/condo” rental builds. There is currently a lot of supply of these homes that could help meet the need for lower income housing. What might be an inducement for these owners to sell some of their supply could be a well-thought-out tax break to the owners for selling a certain percentage of their supply each year.
In Phoenix, there now seems to be an oversupply of these new rentals which may take 2-3 years to liquidate. This could also further hold down or decrease the rate of rent increases. Rental market pricing has remained on hold for five years (see chart below).
So, what is positive in all this is that our government/country came together to formulate a much-needed plan for the American people. Right or wrong, it was a refreshing change of pace.
Market data referenced in this article comes from The Cromford Report.