Bill would limit institutional buyers to 100 single‑family homes to 'protect homeownership'

Senator Emily Alvarado (34th Legislative District) told the House Housing Committee on Feb. 23 that Engrossed Second Substitute Senate Bill 5,496 would limit purchases by large owners to preserve opportunities for Washington families to buy homes. "Home ownership is the American dream," Alvarado said, arguing that rapid institutional purchases have made it harder for typical buyers to compete with all‑cash offers.

The bill bans a "business entity" that already holds an interest in more than 100 single‑family residential properties from purchasing or otherwise obtaining an interest in another single‑family property, and bars defined "investment entities" (for example, real‑estate investment trusts or pooled‑fund managers) from acquiring any additional single‑family properties. Audrey Vacek, committee staff, told the panel the measure exempts purchases by nonprofit corporations for permanent affordability, acquisitions tied to new construction, and properties obtained through…