Florida Bill Aims to Curb Corporate Ownership of Single-Family Homes

Proposed Legislation Seeks to Protect Homeownership and Local Communities

Florida Bill Aims to Curb Corporate Landlord Influence on Housing Market

TALLAHASSEE, FL — A new bill introduced in the Florida House of Representatives on Wednesday seeks to tackle the growing influence of Wall Street-backed landlords in the state’s housing market. Representative Berny Jacques, R-Seminole, introduced HB401, also known as the Strengthening Homeownership Act, in response to concerns that corporate ownership of single-family homes is driving up housing costs and limiting options for individual buyers.

“When you have corporations buying up single-family homes meant to be residential, it takes away from the supply and therefore has an impact on cost,” Jacques stated. His remarks echo findings from a recent analysis by the Tampa Bay Times, which revealed that large corporations own over 117,000 single-family homes across Florida, with approximately 27,000 in the Tampa Bay area alone.

While proponents of the single-family rental industry argue that it provides more options for those unable to purchase homes, the Times report highlighted troubling trends. Many corporate landlords have been accused of neglecting maintenance, evicting tenants at higher rates, and contributing to gentrification in predominantly Black neighborhoods. Researchers have linked the concentration of ownership among a few companies to rising rents and home prices, effectively sidelining individual buyers.

Jacques emphasized that the Times reporting validated the concerns he has been hearing from constituents, prompting the introduction of the bill. The legislation aims to differentiate between traditional owner-occupied homes and those owned by corporations, categorizing the latter as “single-family hybrid” housing. This classification would empower local governments to impose zoning restrictions on corporate rentals in certain neighborhoods.

The bill also includes provisions to protect smaller landlords, ensuring that those with three or fewer properties in a county are classified as traditional single-family homeowners. Jacques clarified that the intent is not to target mom-and-pop landlords but to address the growing corporate presence in the housing market.

Similar legislative efforts are underway in other states and at the federal level, with proposals to cap corporate ownership of homes or impose taxes on companies owning multiple properties. Jacques opted for a zoning-based approach to make the policy more palatable to colleagues wary of interfering in the free market. “This will not be micromanaged by Tallahassee,” he assured.

Madeline Bankson, housing research coordinator for the Private Equity Stakeholders Project, praised the bill’s innovative use of zoning laws to combat corporate concentration in the housing market. “Because this is such new territory and has become a problem relatively quickly, that’s something we really like to see,” she noted.

However, some experts caution that the bill may not significantly impact existing corporate-owned rentals. Lei Wedge, a finance professor at the University of South Florida, pointed out that the legislation primarily affects future developments rather than current holdings. “If you want to stop it, you need to stop them from buying the homes — instead of the land use,” Wedge argued.

The National Rental Home Council, representing major players in the single-family rental market, contends that these companies are essential in meeting the growing housing demand in Florida. CEO David Howard criticized the bill as an attempt to limit housing options for renters, arguing that it could reduce the diversity of available housing in the state.

As the debate unfolds, the proposed legislation highlights the tension between corporate interests and the need for affordable housing options in Florida, a state grappling with a rapidly changing real estate landscape. The bill’s fate remains uncertain, but it has ignited a crucial conversation about the future of homeownership in the Sunshine State.