New Florida Bill Targets Corporate Ownership of Single-Family Homes

by Adam Miller

New Florida Bill Targets Corporate Ownership of Single-Family Homes

A new bill introduced in the Florida House of Representatives aims to curb corporate purchases of single-family homes, a growing trend that has impacted housing affordability and availability across the state. The proposed legislation, House Bill 401 (HB401), also known as the Strengthening Homeownership Act, seeks to differentiate between traditional owner-occupied homes and corporate-owned rental properties, potentially limiting Wall Street-backed landlords from expanding their portfolios in Florida.

Corporate Ownership and Its Impact on Florida's Housing Market

Over the past decade, large real estate investment firms have acquired more than 117,000 single-family homes in Florida, including nearly 27,000 in the Tampa Bay area alone. These institutional investors, often backed by Wall Street, have significantly reshaped the housing market. While proponents argue that corporate-owned rental properties offer more housing options for those unable to buy, critics say these investments drive up home prices and rental rates, making it harder for everyday Floridians to achieve homeownership.

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Additionally, corporate landlords have been linked to higher eviction rates, neglected maintenance, and the displacement of longtime residents, particularly in historically Black neighborhoods. The concentration of ownership among a handful of large companies has been identified as a contributing factor to rising real estate costs, making it more difficult for individual buyers to compete in an already competitive housing market.

How HB401 Aims to Strengthen Homeownership

Representative Berny Jacques (R-Seminole), who introduced the bill, cited findings from an investigative report by the Tampa Bay Times, which confirmed concerns from Florida residents about corporate ownership trends. HB401 aims to give local governments more authority to regulate corporate-owned rentals through zoning laws. Under the proposed legislation:

Corporate-owned single-family rentals would be classified as “single-family hybrid” housing rather than traditional single-family residences.
Local governments could use zoning rules to restrict or prohibit corporate-owned rentals in certain neighborhoods, giving communities more control over their housing markets.
Small landlords (owning three or fewer rental properties in a single county) would be exempt from these new classifications, ensuring that mom-and-pop landlords are not unfairly targeted.

Unlike similar measures in other states that propose capping corporate homeownership or taxing large-scale property investors, HB401 leverages existing land-use regulations to curb corporate expansion. Jacques emphasized that this approach gives local governments flexibility rather than imposing a statewide mandate.

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Potential Challenges and Industry Response

While many housing advocates support HB401 as a step toward preserving homeownership opportunities, others warn that zoning-based regulations could be legally challenged by corporate interests. Critics argue that without direct restrictions on corporate home purchases, the bill may not effectively curb institutional investment in Florida’s housing market.

Some experts, like Lei Wedge, a finance professor at the University of South Florida, believe that more aggressive measures, such as direct purchase restrictions, would be needed to truly impact the market. “If you want to stop it, you need to stop them from buying the homes — instead of the land use,” Wedge said.

On the other side of the debate, the National Rental Home Council, which represents major corporate landlords, opposes the bill. CEO David Howard argues that institutional investors play a vital role in meeting Florida’s growing housing demand. Howard contends that restricting corporate rentals would limit housing choices for Florida residents rather than addressing affordability issues.

What This Means for Florida Homeowners and Sellers

If passed, HB401 could impact both home buyers and sellers across Florida. For homeowners looking to sell, corporate buyers have been a major source of cash offers, often providing competitive pricing. However, limiting corporate acquisitions could result in more opportunities for individual buyers—a shift that could stabilize prices and make homeownership more attainable for Florida families.

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For buyers, particularly first-time homebuyers, the bill could help reduce competition from deep-pocketed investors, making it easier to purchase a home without being outbid by corporations. Neighborhoods with fewer corporate-owned rentals may also experience greater community stability, as owner-occupants tend to invest more in their properties and local economies.

Final Thoughts: A Step Toward Protecting Homeownership in Florida

As Florida’s real estate market continues to evolve, HB401 represents a significant effort to preserve homeownership opportunities and reduce the impact of corporate investors on the housing market. While the bill faces potential legal and political hurdles, it signals growing concerns about the role of institutional investors in Florida’s real estate landscape.

For those considering buying or selling a home in Florida, staying informed about legislative changes like HB401 is crucial. Whether you’re a homeowner looking to sell or a buyer seeking the perfect property, working with a knowledgeable Lakewood Ranch real estate expert can help navigate these market shifts and ensure the best possible outcome.

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