LANSING, Mich. (WOWO) — Gov. Gretchen Whitmer has signed legislation aimed at limiting large investment firms from buying up single-family homes in Michigan, but some housing officials question whether the new law will have a major impact.
The law prevents corporations from owning or renting more than 100 single-family homes in the state. That threshold is lower than a new federal limit that restricts firms owning 350 or more homes nationwide.
Supporters say the measure is designed to keep more homes available for Michigan residents by limiting competition from large institutional investors during a time of housing affordability concerns.
However, critics argue large investors have not been a significant driver of Michigan’s housing challenges compared with other states.
Amy Hovey, executive director of the Michigan State Housing Development Authority, said private equity ownership of homes is not a major issue in the state.
“In our state, that’s not a big issue,” Hovey told Bridge Michigan.
The legislation is part of a broader effort by state and federal officials to address housing costs and increase homeownership opportunities. Supporters say limiting investor purchases could help more residents compete for available homes, while opponents question whether the policy will meaningfully increase housing supply or lower prices.
Michigan officials continue to debate other approaches to expand housing availability, including increasing construction and addressing affordability barriers for buyers and renters.
