A new bill introduced in the Florida House of Representatives could reshape the state’s real estate market by limiting Wall Street-backed corporations from buying up single-family homes. The bill, HB401 – the Strengthening Homeownership Act, aims to preserve homeownership opportunities for Florida residents by giving local governments the power to restrict corporate-owned rentals in certain neighborhoods.
Why Is This Bill Being Proposed?
Florida’s real estate market has seen an increasing presence of large investment firms purchasing single-family homes, turning them into long-term rentals. According to a Tampa Bay Times analysis, corporations own more than 117,000 homes statewide, including nearly 27,000 in the Tampa Bay area.
Supporters of institutional investing in real estate argue that these companies provide rental options for individuals who cannot afford to buy. However, critics—backed by research—point out that corporate landlords:
✅ Drive up home prices by competing with local buyers
✅ Increase rental costs in communities with high investor activity
✅ Have higher eviction rates than small-scale landlords
✅ Neglect ongoing maintenance, leading to housing quality concerns
✅ Accelerate gentrification, particularly in Black neighborhoods
Florida Representative Berny Jacques (R-Seminole), who introduced the bill, said the investigation confirmed what many residents already suspected—that corporate homeownership is making it harder for families to buy homes.
How Would the Bill Work?
If passed, HB401 would create a new classification for corporate-owned single-family rentals called “single-family hybrid” housing. This distinction would allow local governments to prohibit or regulate them through zoning laws.
Key Points of the Bill:
🏡 Traditional homebuyers would be prioritized by limiting corporate acquisitions.
🏡 Small landlords (owning three or fewer homes in one county) are exempt from these restrictions.
🏡 No statewide ban—local governments decide whether to implement regulations.
This approach is a departure from other states, where proposed laws aim to cap corporate ownership at a certain number of homes or impose additional taxes on large landlords.
What Experts Are Saying
Some housing experts praise the bill’s innovative approach, as it allows local decision-making instead of a statewide mandate. Others caution that zoning laws may face legal challenges, making enforcement complicated.
Dr. Lei Wedge, a finance professor at the University of South Florida, notes that the bill doesn’t impact existing corporate-owned homes. Instead, it primarily affects future development, meaning the current market won’t see immediate changes.
Additionally, David Howard, CEO of the National Rental Home Council, argues that restricting institutional landlords limits rental housing options and could worsen Florida’s housing shortage.
What Does This Mean for Homebuyers and Investors?
If this bill moves forward, it could:
🔹 Create more opportunities for first-time homebuyers by reducing corporate competition.
🔹 Encourage long-term homeownership instead of short-term investor-driven rentals.
🔹 Shift investment focus to new developments rather than existing single-family homes.
🔹 Increase local control over rental housing policies.
For real estate investors, this bill signals a changing regulatory landscape. Corporate buyers may need to adjust their strategies, while small-scale investors could see fewer restrictions.
Final Thoughts
Florida’s booming real estate market has attracted large institutional investors, but their presence has made it harder for individuals and families to buy homes. HB401 is an attempt to level the playing field, though its success will depend on local implementation and legal challenges.
As this bill moves through the legislative process, buyers, sellers, and investors should stay informed about its potential impact. If you’re considering buying or selling in Florida, now is the time to understand how these changes could shape the market.
👉 Thinking of buying or selling in Florida? Let’s talk! Contact Michelle Baydemir at Vacay & Co Real Estate for expert guidance on navigating today’s market. 📞 Call/Text: 321-333-1338 | 📧 Email: [email protected] | 🌐 Visit: www.vacayreflorida.com