Florida Legislators Target Out-of-State Investors with New Housing Bill
A new bill filed in the Florida State Legislature aims to curb the influence of large, out-of-state investment companies on the state’s housing market. House Bill 401, introduced by State Rep. Berny Jacques, seeks to empower local governments to restrict multinational corporations from acquiring vast numbers of single-family homes for conversion into permanent rental properties. This initiative comes in response to significant housing price spikes experienced by Floridians over the past two decades.
Key Takeaways
- House Bill 401 proposes allowing local governments to zone land exclusively for single-family housing, thereby limiting large-scale corporate acquisitions.
- The bill’s sponsor, Rep. Berny Jacques, argues it will create a more equitable housing market for Florida residents and help prevent future price surges.
- The National Rental Home Council has voiced opposition, contending the bill restricts rental choices and limits housing opportunities for Floridians.
- HB 401 currently lacks a companion bill in the Florida Senate, which is necessary for its progression.
Addressing Housing Affordability Concerns
State Rep. Berny Jacques stated that the bill is designed to "level the playing field" for Floridians struggling with rising homeownership costs. He explained that when investment firms purchase a large volume of homes, it reduces the available supply for individual buyers, inevitably driving up prices. "So when there is less homes for ownership for an ordinary Floridian, all home prices go up, so that poses a problem and an issue for Floridians," Jacques commented.
Historical Context and Market Trends
Jacques pointed to the housing market downturn in 2008 and the recent pandemic as periods where large real estate investment firms significantly increased their property holdings in Florida. This trend, he believes, has contributed to years of escalating prices for average Floridians. While Florida’s home prices have recently stabilized, with some reports indicating a slight decrease of 4-6% statewide since the pandemic, the underlying concerns about investor impact remain.
Opposition and Counterarguments
The National Rental Home Council has publicly criticized HB 401. In a statement, the council argued that the bill unfairly targets renters and limits their housing options. "This bill seems to be nothing more than a blatant attempt to prevent renters from having the right to live in certain communities. Why would it ever make sense for the state to reduce the range of housing opportunities available for families in Florida? We need more choice in housing not less," the council stated.
Legislative Path Forward
For House Bill 401 to advance, it requires a companion bill to be filed in the Florida Senate. As of now, no such companion bill has been introduced, leaving the bill’s future uncertain.
Sources
- Florida housing bill to target out-of-state investors, Bay News 9.
- Florida housing bill to target out-of-state investors, Spectrum News 1.