Oregon has implemented a new regulation that mandates a 90-day waiting period for corporate buyers looking to purchase single-family homes. This legislation, known as House Bill 4128, aims to provide families and individual buyers with a fairer opportunity to compete in a housing market characterized by high demand and limited supply.
Key Provisions of House Bill 4128
The law specifically targets large real estate investment firms that manage at least $1 billion in assets and control more than 2,500 single-family homes. Under this new legislation, these firms must wait 90 days after a property is listed for sale before they can finalize a purchase. In addition to the waiting period, corporate buyers are required to disclose their status to both the Oregon Department of Justice and the seller during the buying process. Violations of these rules could lead to civil penalties of up to $250,000.
Community land trusts, nonprofits, and smaller housing providers are exempt from these restrictions, allowing them to operate without the same limitations placed on larger firms.
The Impact on Oregon’s Housing Market
Oregon’s housing crisis has reached a critical point, with a state-backed analysis indicating a need for nearly 500,000 additional homes over the next two decades. Factors driving this demand include population growth, demographic changes, and a significant number of second or vacation homes.
In 2022, data from Redfin revealed that institutional investors purchased 12.6% of single-family homes in the Portland area. More recent statistics from ATTOM show that these investors accounted for only 4.4% of home purchases statewide. The institutional share of the housing market remains higher in Sun Belt areas, where investors control approximately 10% of the market.
Support for House Bill 4128 has emerged from organizations such as Oregon REALTORS and Multifamily NW, who recognize it as a step towards addressing some of the state’s pressing housing challenges. The bill is now awaiting consideration from Governor Tina Kotek.
Local officials have reported a significant decline in housing permits, with only 4,800 multifamily units approved in 2024, the lowest number in 12 years. Preliminary forecasts indicate that 2025 will show little improvement in this area, underscoring the urgent need for effective housing solutions in Oregon.
As the state grapples with these ongoing challenges, House Bill 4128 represents a proactive approach to ensuring that individual buyers can compete more effectively against corporate interests in the housing market.
