Rhode Island housing bill would limit sales to private equity firms

PROVIDENCE, R.I. — A new proposal at the State House aims to stop large private equity firms from buying up homes in Rhode Island, as lawmakers warn the practice could worsen the state’s housing crisis.

Sen. Meghan E. Kallman and Rep. Michelle McGaw are sponsoring legislation that would restrict corporate ownership of single-family and multi-family housing.

What the bill would do

The legislation (2026-S 2902, 2026-H 8102) would prohibit companies and other entities with more than $25 million in real estate holdings from owning residential properties in Rhode Island.

If passed, affected entities would be required to gradually sell off those properties, reducing their holdings by at least 10% per year over a 10-year period. Violations could result in fines of up to $10,000.

The restrictions would not apply to affordable housing nonprofits, community land trusts, or public housing agencies.

Lawmakers cite housing crisis

Supporters say the goal is to prevent deep-pocketed investment firms from competing with Rhode Islanders for limited housing supply.

Kallman said private equity firms are driven by profit and can outbid individuals, making it harder for first-time homebuyers to enter the market and pushing rents higher.

McGaw pointed to past concerns with private equity involvement in other sectors, including healthcare, arguing the state should act early to avoid similar impacts on housing.

Trend seen nationwide

Private equity firms began purchasing large numbers of homes after the 2008 recession, often turning them into rental properties. The trend has expanded in states like Texas, Florida, California, Georgia, and North Carolina.

Lawmakers say Rhode Island has not yet seen the same level of activity, but they want to prevent that from changing.

Next steps

The bill was inspired in part by a constituent and has support from Senate President Valarie J. Lawson, who said housing should remain in the hands of Rhode Islanders.

The legislation has been referred to the Senate Housing and Municipal Government Committee. A House hearing is already scheduled.