TOLEDO, Ohio — A new bill introduced by Ohio lawmakers seeks to curb the growing influence of large institutional investors in the state’s housing market, a trend that critics argue is driving up home prices and rents, making homeownership increasingly unattainable for low and middle-income families.
Senators Louis Blessing III, a Republican from the Cincinnati area, and Nickie Antonio, a Democrat from Lakewood, have teamed up to propose a tax targeting high-volume landlords who own 50 or more single-family homes in a county. The bill, which would impose a monthly $2,000 tax per home on these investors, aims to discourage institutional buyers from continuing to purchase large numbers of properties, particularly in urban areas.
According to Blessing, homes that are being targeted by institutional investors are often affordable starter homes in areas that would traditionally be accessible to first-time buyers. He argues that when these properties are purchased by large corporations or investment funds, the supply of homes for prospective homeowners shrinks, forcing more families into the rental market.
“Knocking out the lowest rung on the housing ladder can be devastating for low and middle-income families,” Blessing said. “It all but forces them to rent when they should have a chance to buy.”
Blessing added that these institutional investors often have access to vast amounts of capital, sometimes sourced from hedge and pension funds, which allows them to outbid average buyers who must rely on traditional lending. He believes this has created an uneven playing field where families are unable to compete for basic housing needs.
The bill specifically targets single-family homes with one to three units, excluding multifamily apartments, condominiums, land banks, port authorities, community development corporations, and non-profits. The aim is to focus on the largest institutional players that, according to Blessing, are distorting the housing market and driving up prices by constricting the supply of available homes.
Blessing, who has seen firsthand the impact of large institutional investors in his home county of Hamilton, pointed to one investor group that owns more than 3,000 single-family homes in the area. Cincinnati recently filed a lawsuit against this company, alleging that its business model creates a public nuisance by exacerbating the housing crisis.
The proposed legislation, which is an iteration of a similar bill introduced in the previous General Assembly, has garnered some support in the form of cosponsors, including Sen. Paula Hicks-Hudson (D-Toledo). Blessing and Antonio are now working to push the bill through the current legislative session as a solution to what they view as a growing problem in Ohio’s housing market.
“We cannot rely on the free market to correct this,” Blessing said. “Renting properties is too lucrative for these large investors, and they have no incentive to stop. If we don’t act now, we risk seeing continued increases in home prices and rents.”
The proposed tax would serve as a deterrent to institutional investors, pushing them to reconsider their strategy of buying up large numbers of homes and keeping them as rental properties. The senators argue that this would help restore balance to the housing market and create more opportunities for families to become homeowners.
With the issue of affordable housing becoming an increasingly urgent concern across the country, this bill represents one of several state-level attempts to address the concentration of property ownership in the hands of large investors. While it remains to be seen whether the bill will gain traction in the state legislature, the proposal has already sparked discussions about how best to ensure that Ohio’s housing market serves the needs of everyday residents.