Real Estate Investors Targeted in States With Low Housing Stock

Institutional investors seeking to buy and operate single-family homes as rental properties are facing a wave of legislation from state lawmakers who want to boost access for owner-occupants.

Legislators in Florida, Nevada, Tennessee, and other states have filed bills that would place restrictions on corporate owners that primarily rent houses through long-term leases. Governors in Arizona and New York are also pitching proposals they say would help level the playing field for residents competing against Wall Street in the housing market.

Bipartisan scrutiny of institutional investors—the definition of which varies across state legislation—reflects concerns that home ownership is out of ...