A new federal law that took effect Saturday bars large corporations from buying more single-family homes — a change that could reshape the housing market in metro Atlanta, where corporate landlords own more than one in four single-family rental properties.
What the law does: The 21st Century ROAD to Housing Act prohibits any company that already owns 350 or more single-family homes from buying additional ones. The law became effective Saturday without President Donald Trump’s signature, despite passing both chambers of Congress with strong support from both parties.
Why metro Atlanta: Corporate ownership of single-family homes has grown faster in metro Atlanta than in most U.S. markets. More than a quarter of single-family rental homes in the region are owned by large investment firms, according to figures cited at Monday’s event. That concentration has put individual buyers in direct competition with companies that can pay cash and close quickly, often outbidding families who need a mortgage.
What else is in the law: Beyond the corporate buying ban, the act includes several other housing provisions:
- Reforms to rural housing programs
- Financial penalties for local governments that fall short of housing construction goals
- Grants and forgivable loans to help homeowners repair and weatherize their homes
- Incentives for local governments and banks to fund new housing construction
- Appraisal reform measures aimed at addressing racial bias in home valuations
What people are saying: Senator Raphael Warnock, a Democrat who championed the corporate buying ban, held a news conference Monday in Atlanta’s Adamsville neighborhood, an area with high rates of corporate-owned homes. Mayor Andre Dickens and District 10 City Councilmember Andrea Boone joined him.
Jacob Parcel, a third-generation Smyrna resident who has been trying to buy a home for two years, spoke at the event. “Me and my wife resonate with this closely because we ourselves have been trying to buy a home for the last two years, and homes in our area have been few and far between,” Parcel said. “I believe if you work hard and if you save for years, you should be able to buy a home in the neighborhood that you want to be in.”
“Housing is dignity, housing is stability, housing is hope. When you set politics aside and center the people, you have a chance at getting the public policy right,” Warnock said.
What this means for you: If you have been competing against corporate buyers for homes in metro Atlanta, the law means companies that already own 350 or more homes cannot legally add to their portfolios. That does not affect corporations that own fewer than 350 homes, and it does not require any company to sell homes it already owns.
The path forward: The law’s provisions carry different start dates, and federal agencies will need to write new rules to carry them out. Housing advocates and economists say the full effect of the corporate buying ban will take time to show up in local markets.
B.T. Clark is an award-winning journalist and the Publisher of The Georgia Sun. He has 25 years of experience in journalism and served as Managing Editor of Neighbor Newspapers in metro Atlanta for 15 years and Digital Director at Times-Journal Inc. for 8 years. His work has appeared in several newspapers throughout the state including Neighbor Newspapers, The Cherokee Tribune and The Marietta Daily Journal. He is a Georgia native and a fifth-generation Georgian.
- B.T. Clark
- B.T. Clark
- B.T. Clark
- B.T. Clark
