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Committee hears concerns that private equity and housing costs are squeezing paths to entrepreneurship
Summary
Multiple presenters told the Small Business Development Committee that declining homeownership and private equity purchases of single‑family homes reduce the equity vehicles historically used to launch small businesses.
Entrepreneurs, veterans and committee members told the Small Business Development Committee that reduced access to homeownership and large investor purchases of single‑family homes are constraining traditional pathways to business creation and multigenerational wealth.
Why it matters: Several speakers said family home equity has historically funded small business startups, and they recommended policy responses — from zoning and housing supply changes to bills addressing investor purchases — to preserve opportunities for first‑time buyers and entrepreneurs.
Derek, a Marine veteran and small‑business owner who spoke to the committee, described homeownership as a foundation for entrepreneurship and said large outside investors are removing that pathway. “They own 40,000 houses just in Georgia,” he said, criticizing private equity purchases of single‑family homes and the effect on first‑time buyers.
Other presenters echoed that view. One said a sizable share of homes in some districts are being purchased by investors — one estimate offered during the hearing was that “60% of the homes in my district were purchased by investors.” Speakers said the result is fewer opportunities for young families to build equity that could be tapped to start businesses.
Policy responses mentioned in the hearing included legislation to limit or regulate investor purchases (a committee member said she plans to introduce a bill this session), incentives to build fee‑simple ownership options such as condominiums, and programs to assist renters to become homeowners. One presenter suggested focusing on smaller, more affordable housing units (the term “800–1,000 square feet” was used as an example of smaller starter homes) and more condo development so individuals can buy fee simple units rather than rent.
Committee members noted existing draft bills and said they would revisit and refine proposals. No formal vote or ordinance was considered during the session.
Ending: Members thanked witnesses and said housing and homeownership would be included among priorities the committee explores in the current legislative session.
