Legislation will help family homebuyers by capping the number of single-family homes corporate investors can buy
NASHVILLE, TN. – With Tennessee’s housing market increasingly dominated by out-of-state investors and real estate conglomerates, Democratic lawmakers are taking action to ensure homeownership remains within reach for working families.
Sen. Charlane Oliver (D-Nashville) and Rep. Aftyn Behn (D-Nashville) have introduced the “Homes Not Hedge Funds Act” (SB 242 / HB 298) to curb corporate overreach in Tennessee’s housing market and put families before financial firms. The bill is scheduled for its first hearing on Tuesday, March 18, in the Senate State and Local Government Committee.
“Tennessee families are being priced out of homeownership by deep-pocketed investors who are buying up entire neighborhoods and turning them into rental properties,” said Sen. Oliver. “Owning a home is one of the most reliable ways to build wealth, and this bill ensures that more working families have a fair shot at the American Dream.”
The Homes Not Hedge Funds Act would prohibit corporate investors from purchasing more than 100 single-family homes in Tennessee’s largest counties for rental purposes. The bill applies to counties with populations above 150,000, where the effects of corporate real estate speculation have been most pronounced. It also empowers the Tennessee Attorney General to enforce penalties of up to $100 per day for each home acquired in violation of the law.
“In Tennessee, we believe in hard work and homeownership, not hedge fund profiteering,” said Rep. Behn. “When corporate landlords control too much of our housing stock, working-class families lose out. This bill sets a clear boundary to keep communities stable and homeownership attainable.”
Tennessee’s Housing Crisis Pricing Families Out
The bill’s findings recognize that homeownership remains one of the most reliable ways for families to build wealth and economic security, but unchecked corporate real estate investment is lowering the supply of homes for prospective buyers and driving up housing costs.
Since the 2008 housing crash, corporate investors have dramatically increased their footprint in Tennessee’s real estate market, often outbidding families on home purchases. AXIOS described the phenomenon like this: “Nashville is a hotbed for corporations gobbling up single-family homes.”
In Rutherford County, real estate investment trusts now own 10% of all rental properties.
A 2024 study by the Tennessee Housing Development Agency found that in Davidson County, investor purchases comprised 7% of all home sales from 2018-2022, but spiked to 20% in early 2020. In neighborhoods like Antioch, corporate investors purchased 21% of all homes, with average investor-purchased homes valued at $270,000 compared to $430,000 for individual buyers—creating a widening gap in housing affordability.
So it was no surprise in January, when the Tennessee Housing Development Agency announced that the state’s Housing Cost Index hit a 10-year high, with the median purchase price doubling. Families now spending an average of 45.5% of their household income on stable housing, the report said.
Housing costs are also a contributing factor the overall insecurity being felt by families across the state. According to the United Way ALICE Report, 44% of Tennessee households can’t afford the basics. That’s 1.2 million families who are struggling to make ends meet and forced to choose between rent, child care and food.
Next Steps
The Homes Not Hedge Funds Act is scheduled to receive its first hearing in the Senate State and Local Government Committee on March 18.
