Corporate Ownership & Housing: Key Legislative Insights for REALTORS®

As housing affordability continues to dominate headlines and policymaker agendas, a new wave of legislation is targeting corporate ownership of single-family homes. For REALTORS®, these proposals are more than just policy—they have the potential to reshape buyer behavior, inventory trends, and investor activity in our markets.

While many agree that today’s housing market presents serious affordability challenges, there’s little consensus on whether limiting institutional investors will deliver meaningful improvements. The growing debate exposes competing views on the role of investors, housing supply constraints, and market fairness—making it essential for real estate professionals to stay informed and engaged.

Recent Legislative Proposals REALTORS® Should Watch

A number of states are introducing bills designed to restrict corporate or institutional investors from buying up large volumes of single-family homes. Here are a few key examples:

• California – AB 2584: Introduced by Assemblymember Alex Lee, this bill would prohibit corporate entities that own more than 1,000 single-family homes from purchasing additional properties for rental use.

• Nebraska – Corporate Ban Proposal: Senator Justin Wayne’s bill would prevent corporations and hedge funds from purchasing single-family homes unless headquartered and primarily operated within Nebraska.

• Georgia – House Bill 305 ("Protect the Dream Act"): This legislation would bar large investment entities from buying additional properties in a county once they own 25 or more single-family homes.

• New York – Governor Hochul’s Proposal: A 75-day waiting period for investment firms before they can bid on homes and limits on tax incentives are being proposed to curb rapid investor acquisition in hot markets.

• Nevada – AB 457 and SB 242: These bills focus on closing tax loopholes used by large property holders and slowing investor acquisitions by mandating a 30-day listing window before institutional buyers can purchase residential properties.

Investor activity in residential real estate has surged in recent years, particularly in fast-growing markets. According to a Forbes article, this trend has sparked growing concern among lawmakers and the public, who see investor-driven purchases as a major contributor to housing shortages and declining affordability.

Spotlight on New Mexico

New Mexico has joined the national conversation on this issue. In early 2025, State Senator Harold Pope introduced Senate Bill 77 (SB 77), which aimed to prohibit hedge funds, private equity firms, and corporations from purchasing single-family residential properties in the state. The goal was to preserve housing opportunities for individual buyers and counteract investor-driven competition.

Although SB 77 did not pass during the 2025 legislative session, its introduction signals a strong interest in addressing the impacts of corporate homeownership. The New Mexico Association of REALTORS® actively tracked the bill and provided updates to members on its progress and potential consequences for the housing market.

Additionally, local communities—such as Santa Fe—have raised concerns about out-of-town corporate landlords purchasing homes and converting them into short-term rentals. Residents worry that this trend exacerbates already limited housing availability and pushes prices beyond the reach of local buyers.

What This Means for REALTORS®

As a REALTOR®, your clients—both buyers and sellers—may have questions about how these proposals could impact them. Institutional investors often provide liquidity to the market and can help stabilize communities by investing in property upkeep and management. At the same time, there's growing concern that they contribute to inventory shortages and outcompete traditional buyers, especially first-time homebuyers.

This legislation, if passed, could result in:

• Shifts in buyer demographics: If investor activity slows, more individual buyers may reenter competitive markets.

• Inventory fluctuations: Some markets might see more homes become available, while others could experience reduced investment-driven renovations.

• Policy-driven uncertainties: REALTORS® will need to stay up to date and educate clients on evolving rules that may affect purchasing timelines, eligibility, and tax considerations.

The Bigger Picture

Ultimately, these legislative efforts aim to address symptoms of a broader issue: the mismatch between housing supply and demand. Restricting corporate ownership may offer temporary relief in some areas, but without meaningful increases in new housing construction, affordability challenges are likely to persist.

As REALTORS®, we play a crucial role in promoting policies that strike the right balance between expanding homeownership opportunities and maintaining a stable, competitive housing market. Staying engaged and informed through our REALTOR® associations—locally, statewide, and nationally—is essential to effectively advocate for the needs of our clients and communities.