Federal policymakers are advancing legislation aimed at curbing institutional ownership of rental housing—but for some populations, the same policy designed to expand access may inadvertently constrain it (see Congressional Housing Deal Faces New Hurdle As Trump Pushes Investor Ban). Over the past year, the housing affordability crisis has dominated the Administration’s domestic policy agenda, with a focus on limiting purchases by “large institutional investors” that own 350 or more single-family homes. To address this bill—The 21st Century ROAD To Housing Act—was passed by the Senate on March 12 and is now with the House.

There are many provisions to the bill including the central restriction on the purchase of new single-family homes by large institutional investors that directly or indirectly…