Home purchase limits for private equity corporations proposed under new bill

Trump on data centers, affordable homes

President Trump addresses a new policy to make homeownership more affordable at the State of the Union address.

(FOX 9) - As housing affordability remains a hot topic among Americans nationally, Minnesota lawmakers are hoping to address the issue of rising home prices by banning private equity corporations from owning single-family homes, while also placing a cap on the number other corporations can own.

Private equity home limit in Minnesota

What we know:

A total of eight lawmakers currently back HF 2687, which if approved by both the Minnesota House and Senate, would create a ban on private equity corporations from owning a single-family home in Minnesota.

Sponsored by Rep. Esther Agbaje (DFL-Minneapolis), the legislation would also limit certain corporations' stake in owning more than 50 residential properties, including duplexes, triplexes and fourplexes.

What they're saying:

"This would hopefully be the first step in returning the power of homeownership back to the people," said Rep. Agbaje before the House Housing Finance and Policy Committee on Wednesday. "Homeownership in Minnesota continues to be out of reach. The reasons are varied, but corporate ownership is definitely a factor."

Rep. Agbaje noted companies owning homes that are then not well maintained, often referred to as "slumlords," as part of the inspiration behind the bill, specifically mentioning the story of Havenbrook Homes in Minneapolis, whose demise FOX 9 previously reported.

Representatives for both homebuilders and real estate associations expressed concerns about the proposal potentially stalling developments and sales within their respective industries during testimonies.

"What happens when there are not enough buyers for the supply on the market? Single-family homes can go into foreclosure, or sit vacant and go into disrepair. We believe that buyers and sellers both benefit from a free and open real estate market," said Roger Eger with Minnesota Realtors before the committee on Wednesday.

The mostly DFL-backed bill also has the support of Rep. Elliott Engen (R-Lino Lakes) as a bipartisan sponsor.

Dig deeper:

Under the current proposal, a "private equity company" refers to an investor or group of investors who buys or sells assets – including companies – to turn a profit, while excluding government agencies, land trust and nonprofits that build or rehab housing, or the mortgage holder of a foreclosed property.

In addition to the restrictions applied to single-family homes, the bill would also prohibit a private equity company from having any stake in duplexes, triplexes, and fourplexes as well.

Changes to real estate industry in commission structure

The real estate industry is facing big changes to broker fees and traditional commission structure. FOX 9's Babs Santos has the story.

Big picture view:

If the commissioner of commerce determines a continuing violation 12 months after a cease and desist letter has been provided to a corporate owner, the commissioner could impose a penalty of $25,000 for each single-family home owned in excess of 50 property limits.

What's next:

The bill was heard before the Housing Finance and Policy Committee on Wednesday, before being laid over for consideration at a later date.

If approved, and signed into law by Gov. Walz, the bill would apply to home purchases occurring on or after Aug. 1, 2026.