Virginia state senator Glen Sturtevant, R-Chesterfield, has made affordable housing a central focus of his legislative agenda, announcing a series of new proposals aimed at curbing the influence of large investment firms on the state’s housing market. Sturtevant, who has been vocal about the negative effects of institutional investors buying up homes in Virginia, recently outlined his plans in a Zoom call with the public and the press. He hopes his proposed legislation will help make homeownership more accessible for everyday Virginians, particularly young families and first-time homebuyers.
He noted that these firms, often with hundreds of millions in assets, are increasingly purchasing single-family homes, pushing out potential homeowners who cannot compete with their all-cash offers. According to data from Redfin, investment firms purchased one out of every six homes nationwide in the second quarter of 2023, and a disproportionately large share of low-priced homes. These companies often hold onto properties rather than redeveloping them, further exacerbating the housing shortage and driving up prices.
“There’s an unfair advantage. They can sit on properties, waiting for the best moment to sell, and they have all the advantages in the world when it comes to acquiring properties in the first place,” he added.
Sturtevant is reworking a bill that he hopes will address this issue in the upcoming 2025 legislative session. The bill, which he attempted to pass in 2024 but was unsuccessful, would place limits on investment firms’ ability to purchase homes in Virginia. Specifically, it would prohibit any investment firms worth more than $50 million from buying residential properties.
“This is intended to target the big Wall Street investors, not your mom-and-pop investors who buy a home and flip it or who have a duplex under management,” Sturtevant clarified.
Sturtevant believes that limiting the ability of large institutional investors to buy homes will help first-time homebuyers, particularly younger generations like millennials and older Gen Zers, who are struggling to enter the housing market.
In addition to his efforts to rein in investment firms, Sturtevant has proposed allowing homebuyers to inherit a seller’s mortgage rate. This proposal would allow buyers to take over an existing mortgage at the rate it was originally issued, which could provide immediate relief to those purchasing homes that were bought or refinanced during the lower interest rates seen in the wake of the COVID-19 pandemic.
This idea, Sturtevant argued, could help buyers who are struggling with higher mortgage rates in the current market, which has made homeownership increasingly out of reach for many Virginians.
Sturtevant has also expressed interest in exploring ways to incentivize companies in Virginia to offer down payment assistance to employees.
Though Sturtevant’s proposals are still being refined with the help of Virginia’s Division of Legislative Services, the senator acknowledged that affordable housing issues cannot be solved through legislation alone. Housing has become a prominent issue in both local and federal politics, with candidates from both major political parties raising concerns about the nation’s growing housing crisis.
Several other housing-related measures are also making their way through Virginia’s legislature. Del. Carrie Coyner, R-Chesterfield, and Sen. Ghazala Hashmi, D-Chesterfield, proposed the “5,000 Families” initiative, which would provide rental relief to families with school-age children to prevent displacement during the academic year.
