The standard refrain is that the housing market is over-regulated, NIMBY's have made it too hard to build. Adding more regulation discouraging instutitions from building sounds like making the problem worse rather than better.
Regulations are not inherently good nor bad so please say what regulations are bad and what regulations should be changed because “less regulation” doesn’t mean things get better and can mean things get very very much worse (hey let’s allow toxic wast dumps under homes because that was too regulated before!)
The OP wants to reduce the amount of institutional ownership of housing. This will reduce supply of rental units, increasing the cost of rental units.