How Institutional Tax Advantages Shape the Single-Family Housing Market
On January 21, 2026, Donald Trump signed an executive order aimed at limiting how large institutional investors compete with individual buyers for single-family homes.
Here is the real estate and tax nuance most people miss:
An individual homeowner cannot depreciate their primary residence.
A large institutional buyer can depreciate that same house when it is treated as a rental.
While the structure is depreciated over 27.5 years, institutional buyers often use cost segregation studies to accelerate depreciation on qualifying components like fixtures, finishes, appliances, and site improvements. When paired with bonus depreciation, portions of a home can be written off far faster — sometimes heavily front-loaded into the early years of ownership.
This is not theoretical.
The cost segregation industry has exploded, largely driven by institutional buyers scaling single-family rentals. Entire firms now exist solely to maximize accelerated depreciation for large portfolios.
Same house. Same street.
Very different rulebook.
Housing policy should not reward institutional accumulation while penalizing owner-occupants who are simply trying to build stability and equity.
I work extensively with first-time homebuyers. They are the bread and butter of my livelihood, and I professionally watch this play out almost daily — buyers competing against entities with cheaper capital, tax-advantaged strategies, and no intention of ever living in the home.
Homes were designed to be lived in first.
Invested in second.
If you are interested in a thoughtful conversation about how housing policy, tax treatment, and real-world market dynamics intersect, I am always open to exploring it together.
As always, hit me up for a good time - in real estate!
Angela Peters, The Home Girl, Keeping it...real estate.
402.215.1529 / angela@thehomegirlne.com / www.thehomegirlne.com
