House approves Posthumus bill to keep Michigan homes in reach for families

The Michigan House of Representatives today approved legislation sponsored by Majority Floor Leader Bryan Posthumus to fix unintended issues in a new law designed to stop massive investment firms from buying up Michigan homes and pricing families out of the market.

House Bill 6243 makes practical updates to the law to ensure it protects Michigan homebuyers without creating new problems that could stifle the housing supply.

“Michigan families shouldn’t have to go head-to-head with a billion-dollar investment firm that can show up with cash and buy an entire block,” Posthumus said. “Homeownership has always been a hallmark of the American Dream, a chance to put down roots, build a life, and invest in your community. We put this law in place because Michigan families deserve a fair shot at that opportunity.”

In July, Michigan enacted a law restricting large institutional investors and private equity firms from purchasing single-family homes. These firms can use enormous amounts of capital to buy homes in bulk, turn them into rentals, and use the rental income to finance even more investments.

The bill makes clear that homes already legally owned by large institutional investors can be sold. An investor that owned a home on or before July 21, 2026, or purchased it legally under the new law, would be able to sell that home without creating a violation for the buyer.

“If the goal is to get these homes out of the hands of massive investment firms, we obviously need to let them sell the homes,” Posthumus said. “We don’t want a technicality in the law to create the exact opposite result of what we were trying to accomplish.”

The bill also addresses build-to-rent developments and clarifies how certain homes are counted when determining whether an investor falls under the law

“It’s about recognizing that a family trying to buy its first home is playing a completely different game than a Wall Street firm with billions of dollars behind it,” Posthumus said. “We want Michigan homes owned by Michigan families, and this bill helps us get there.”

House Bill 6243 now advances to the Senate for consideration.

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