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State lawmakers across the country have increasingly targeted corporate landlords amid concerns that large investment firms are making it harder for Americans to buy homes and driving up rents.
In Pennsylvania, lawmakers have introduced House Bill 2704, a proposal aimed at limiting investor ownership of single-family homes and increasing disclosure requirements for corporate property owners. The bill was introduced last week and referred to the House Housing and Community Development Committee.
Across the country, restrictions against corporate landlords have gained support, and it’s from all along the political spectrum.
Why It Matters
Progressive Democrats have long criticized private-equity-backed landlords and institutional investors for their growing role in residential real estate.
And in a rare bipartisan issue, Republicans, including President Donald Trump, have said that Wall Street firms are crowding out first-time homebuyers.
“A growing share of single-family homes, often concentrated in certain communities, have been purchased by large Wall Street investors, crowding out families seeking to buy homes,” Trump said in an executive order in January. “Hardworking young families cannot effectively compete for starter homes with Wall Street firms and their vast resources.
“Neighborhoods and communities once controlled by middle-class American families are now run by faraway corporate interests. People live in homes, not corporations. My Administration will take decisive action to stop Wall Street from treating America’s neighborhoods like a trading floor and empower American families to own their homes.”
What to Know
Large institutional investors have significantly expanded their presence in single-family-home markets since the Great Recession—December 2007 to June 2009.
Several states are pursuing different strategies to combat it, including limiting how many homes corporations can own, restricting the use of rent-setting algorithms as well as strengthening larger tenant protections.
The legislative momentum has accelerated in 2026, with lawmakers in numerous states introducing bills to curb the influence of institutional landlords.
“Pennsylvania’s proposal reflects an increasing frustration that large investors are competing directly with first-time buyers for the same starter homes, turning properties that could build family wealth into long-term rental assets,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“This is becoming a larger trend because housing shortages, higher mortgage rates, and rising home prices have made voters far more sensitive to the role private equity have in local markets, especially when they can outbid families with cash offers.”
Pennsylvania
House Bill 2704 would create new restrictions on investor ownership of single-family residential properties, require companies to disclose how many homes they own, and impose penalties for repeated violations.
“Institutional investors concentrating in specific submarkets and squeezing out first-time buyers is real and documented,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. “But institutional investors are still a minority of national single family rental stock. The actual problem is their concentrated presence in tight local markets where they’re outbidding owner occupants.”
The bill was introduced last week and has been referred to committee.
California
Governor Gavin Newsom this year announced plans to pursue regulations aimed at large housing investors.
While the specific legislation has not yet been finalized, the proposals under discussion include stronger state oversight of corporate landlords. There could also be tax-code changes designed to discourage large-scale investor ownership of housing.
“When I took office in 2019, my goal was clear: to reverse decades of inaction on housing and homelessness and ensure there was enough housing and care for people to leave the streets,” Newsom said in a statement this month.
“Through historic investments, stronger partnerships, and greater accountability, we’re seeing real progress that will benefit Californians not just today, but for generations to come. I’m grateful for the Legislature’s partnership, as together we add to this proven foundation with new laws that cut red tape, expand financing opportunities, and help communities build housing faster.
Minnesota
Minnesota has become one of the leading states in pursuing corporate landlord caps.
Lawmakers introduced an updated version of their bill HF 685 that would restrict large corporations, private-equity firms and institutional investors from accumulating significant numbers of single-family homes.
The goal is to preserve homeownership opportunities for individual buyers rather than investors.
“Corporations have been buying up single family homes at an alarming rate,” state Senator Liz Boldon, a member of the Democratic-Farmer-Labor Party, previously said. “And a disproportionate number of these purchases are happening in neighborhoods occupied predominantly by people of color and low-income households.”
Maryland
Maryland has targeted the use of rent-setting algorithms and data-sharing practices among large landlords.
Specifically, the Rockville City Council voted to completely ban the use of artificial intelligence in establishing rent costs.
“Everyone deserves a fair chance to find and keep a place to call home,” Rockville Mayor Monique Ashton told WTOP News. “This comprehensive update reflects our commitment to fostering a housing market that works for everyone.”
Trump’s Federal Push
The issue is no longer just a matter for state legislatures to decide on.
In January, Trump signed an executive order titled “Stopping Wall Street from Competing with Main Street Homebuyers,” which directed federal agencies to prevent the government from facilitating purchases of single-family homes by large institutional investors whenever possible.
The order also instructed federal officials to review antitrust concerns, ownership disclosures and other regulatory tools related to large investor ownership of housing.
“To preserve the supply of single-family homes for American families and increase the paths to homeownership, it is the policy of my Administration that large institutional investors should not buy single-family homes that could otherwise be purchased by families,” the order said.
Rare Area of Bipartisan Agreement
Restrictions on corporate landlords has become politically unusual because Democrats and Republicans are often largely against it.
While Democratic-backed proposals tend to focus on tenant protections and rent-setting practices, Republicans have looked to preserve homeownership opportunities by limiting competition from Wall Street investors for starter homes.
Both sides have framed the issue similarly: that institutional investment firms have become too dominant in parts of the housing market and are contributing to widespread affordability challenges.
“I do think we’ll see more states pursue similar legislation, particularly as scrutiny grows over the tax advantages these companies have received,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “Whether the restrictions ultimately achieve their intended goal is another question.
“The reality is that corporations have teams of accountants and attorneys whose job is to find legal ways around new rules. History suggests they’ll adapt, and they’ll likely find new ways to structure these investments once again.”
What Happens Next
Pennsylvania’s bill is still in the early stages of the legislative process and has not yet received a committee vote.
“The idea is a novel one, especially because it targets the tax incentives and breaks that have helped large corporations and private equity firms expand their ownership,” Thompson said. “In my view, attacking the incentive structure is likely a more effective approach than trying to ban corporate ownership outright.”
Contact Newsweek editors on this story: Jason Lemon and Dave Siminoff.
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