The Overview

If you're a large investment firm eyeing Michigan single-family homes, the state just closed that door. Michigan's House Bill 6074, a new law prohibiting large institutional investors from purchasing single-family homes in the state, became law when Gov. Gretchen Whitmer (D) signed it July 21. ​

Institutional investors can compete directly with first-time buyers, Axios Detroit reported, and their share of Michigan home purchases had held steady even as the broader housing market cooled. The law took effect immediately upon signing.

What the Law Does

The law bars any for-profit entity that controls more than 100 single-family homes in Michigan and manages or holds a net value of at least $375 million from buying, or contracting to buy, any additional single-family homes in the state. Exemptions cover build-to-rent and renovate-to-rent programs, certain homeownership assistance programs, purchases by mortgage servicers or lenders acquiring homes through foreclosure and disposing of them within a commercially reasonable period, and purchases tied to approved brownfield redevelopment plans. Violators face a civil fine of up to $25,000 per home acquired in violation; the county prosecutor or the attorney general can sue to collect.

Legislative Status

Rep. Karl Bohnak (R) sponsored the bill, joined by cosponsors Rep. Cam Cavitt (R), Rep. Jennifer Wortz (R), Rep. Kathy Schmaltz (R), Rep. Greg Markkanen (R), and Rep. Dave Prestin (R). The House passed the bill 102–3 on June 25, and the Senate passed it 29–7 on July 3. The House then concurred in the Senate's version 104–2.

The Michigan House Republican Caucus said Bohnak's plan would stop big businesses from buying up Michigan homes, according to the House Republican Caucus. Some who testified argued that institutional investors make up only a small share of Michigan's housing market, WZMQ 19 reported. Gov. Whitmer's office described the measure as part of a broader package of bills to support homebuilding, according to the Governor's office.

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