State Senator Pfaff co-sponsors legislation to limit hedge funds from purchasing single-family homes

March 28, 2025

MADISON, Wis. – Yesterday, Wisconsin State Senator Brad Pfaff (D-Onalaska) introduced legislation to improve housing access and affordability in Wisconsin by prohibiting hedge funds from purchasing single-family homes.

According to information attached to the bill, in recent years, hedge funds and large corporate investors have significantly increased their acquisitions of single-family homes across the country. By leveraging their vast financial resources, these entities often purchase properties in bulk, outbidding prospective homeowners (especially young, working families) and driving up home prices. This practice has worsened housing affordability, pushing countless working families out of the home buying market and increasing rental costs in impacted communities.

LRB-2448/1 will prohibit hedge funds from purchasing single-family residential properties within Wisconsin. By limiting such acquisitions, this bill hopes to:

• Preserve Homeownership Opportunities: Preventing institutional investors from dominating the market will empower our state’s working families to secure stable housing, fostering stable communities.
• Curb Rising Housing Costs: With fewer corporate entities competing for properties, home prices can stabilize, improving affordability for everyday residents.
• Strengthen Local Economies: Homeownership contributes to wealth building for families, increased civic engagement, and more stable school districts and neighborhoods.

This bill would only limit the purchase of future homes, there is no enforcement included for those that have been purchased in the past.

This bill is based off of a proposal introduced by a Republican State Senator in Virginia, who saw the need for better affordability in his own community and understood that this is an issue that defies party lines. We hope you will join us in working towards a solution on this important issue.

In supporting the bill Senator Pfaff released the following statement:

“Housing is a bridge to a higher quality of life. Increasing access to affordable housing is essential for employment, economic growth, and building a stronger community. Working people and families do not often have the resources to compete with large corporate entities that can far outbid prospective home buyers, driving up housing costs in our local communities. This commonsense proposal addresses rising housing costs and puts hardworking Wisconsinites first.”

Senator Pfaff authored this legislation with Senator Sarah Keyeski (D-Lodi), Representative Kalan Haywood (D-Milwaukee) and Representative Karen DeSanto (D-Baraboo).