As we move into 2026, three new federal policy initiatives stand to reshape the U.S. housing landscape and, by extension, the investment environment for both individuals and institutions. The Federal Housing Finance Agency (FHFA) has announced plans to purchase up to $400 billion in 30-year U.S. mortgage-backed securities (MBS), signaling a renewed commitment to stabilizing long-term mortgage rates and ensuring liquidity in the housing finance system. For both lenders and borrowers, this policy aims to dampen volatility in mortgage pricing while supporting credit availability across a broad spectrum of homebuyers. From an investor’s perspective, this large-scale federal backing reinforces confidence in the secondary mortgage market, though it may also compress spreads and limit yields for private MBS investors.

A second major change comes through the federal government’s move to ban private equity firms and real estate investment trusts (REITs) from purchasing bulk single-family dwellings. This step addresses long-standing concerns that institutional accumulation of single-family homes has constrained inventory and driven up home prices for individual buyers. While this restriction will likely open more opportunities for first-time and middle-income homebuyers, it also reduces institutional demand that previously helped sustain housing construction. For investors, the adjustment signals a meaningful rebalancing toward individual ownership models and potentially slower capital flows into residential real estate funds.

Complementing these financial and ownership reforms, the federal government has also introduced new guidance designed to accelerate local zoning and governance processes. The aim is to remove bureaucratic barriers that hinder the timely development of single-family housing, streamlining permitting and incentivizing builders to expand inventory more efficiently. By promoting standardized best practices across jurisdictions, Washington seeks to reduce construction costs that have been inflated by fragmented local regulations. For developers and municipalities alike, this creates an environment more conducive to predictable planning, faster approvals, and potentially lower end-user housing costs.

Taken together, these three policy shifts signal a coordinated federal approach to housing affordability—targeting financing stability, market accessibility, and supply-side efficiency. For wealth managers and CPAs, understanding the interplay of these measures will be critical when advising clients on real estate investments, portfolio diversification, and long-range financial planning. Whether viewed as an opportunity or a constraint depends largely on one’s role in the housing market: investors may face a narrower playing field, while homeowners and developers could find renewed growth potential. The broader message, however, is clear—the federal government is reasserting its role as a stabilizer and rebalancer in the housing economy.