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Panel considers HB 305 to cap institutional purchases of single‑family homes
Summary
House Bill 305 would limit corporate or investment trust purchases of single‑family homes to 25 properties or $6 million in net assets per county; academics and community groups urged limits, while realtors and builders raised concerns about unintended effects on financing and supply.
Representative Alalier presented House Bill 305 proposing a cap on the number of single‑family homes that a corporation or real‑estate investment trust may purchase in a single county: 25 homes or a total net asset threshold roughly described as $6,000,000. The sponsor said the goal is to prevent large institutional investors from buying entire neighborhoods and crowding out prospective owner‑occupants.
Academic witnesses presented data showing high concentrations of corporate single‑family rental ownership in Metro Atlanta; witnesses said institutional buyers are sometimes concentrated in particular ZIP codes and census tracts, depressing owner‑occupancy and driving local rent increases. Doctoral and university researchers said some census tracts in Metro Atlanta exceed 50% institutional ownership of single‑family rentals.
The Georgia Association of Realtors and Home Builders Association urged caution. They said institutional capital also provides financing for construction and that limiting who may buy could reduce sources of capital and slow production, which might worsen supply constraints. Builders raised concerns about whether the bill would restrict legitimate partnerships and financing for new home construction.
Multiple local officials and community advocates testified in support, saying corporate purchasing has priced out first‑time buyers, reduced homeownership opportunities, and concentrated rental ownership in particular neighborhoods. The committee received testimony and supporting documents but did not take a vote; the bill was heard only.
