Oregon has implemented a 90-day waiting period for corporate buyers seeking to purchase single-family homes. This new legislation, known as House Bill 4128, is designed to provide families and individual buyers with increased opportunities to compete in a housing market characterized by high demand and limited supply.
The bill targets large real estate investment firms that control 2,500 or more single-family homes and manage assets exceeding $1 billion. Under this law, these corporations must wait for 90 days after a property is listed before they can make a purchase. Additionally, they are required to disclose their corporate status to the Oregon Department of Justice and to the seller at the time of purchase. Violations of these regulations can result in civil penalties of up to $250,000.
Exemptions and Market Impact
Notably, community land trusts, nonprofits, and smaller housing providers are exempt from the provisions of House Bill 4128. This exemption aims to encourage a more diverse housing market by supporting entities that may not have the same resources as large corporate investors.
An analysis by Redfin revealed that investors purchased 12.6% of single-family homes in the Portland area during the first quarter of 2022. However, more recent data from the real estate firm ATTOM indicates that institutional investors accounted for only 4.4% of home purchases across Oregon. In comparison, these investors control 10% of the housing market in Sun Belt states but only 1% of single-family homes in Portland.
Reactions to House Bill 4128 have been largely positive among stakeholders. Both Oregon REALTORS and Multifamily NW have endorsed the legislation, viewing it as a step toward addressing significant housing concerns in the state. The bill has been forwarded to Governor Tina Kotek for her consideration.
Oregon’s Ongoing Housing Crisis
While the new law aims to curb corporate purchases in the short term, a state-backed housing analysis underscores a pressing need for more homes in Oregon. Over the next 20 years, the state requires nearly 500,000 additional homes to meet demand. Factors contributing to this urgent need include underproduction of housing, homelessness, and demographic changes.
Local, county, and state officials have issued permits for only 4,800 multifamily units in 2024, marking the lowest total in over a decade. Preliminary data suggests that 2025 may see only a slight increase in this figure, raising concerns about the state’s ability to tackle its housing shortfall effectively.
As House Bill 4128 moves forward, its long-term effectiveness in addressing Oregon’s housing challenges will be closely monitored by both lawmakers and residents alike. The legislation represents a significant effort to create a more equitable housing market, but substantial work remains to ensure that all Oregonians have access to affordable homes.
