State Senator Rachel Ventura is advancing legislation to curb the growing influence of private equity and large institutional investors in Illinois’ housing market, following a subject matter hearing in the Senate Executive Committee recently.
“As working families struggle to find affordable homes and rising demand continues to drive up prices, we have a responsibility to preserve our existing housing supply for people, not large corporate investors,” said Ventura (D-Joliet). “Unchecked investor activity is pricing Illinoisans out of their own neighborhoods, and we need clear guardrails to restore balance.”
Senate Bill 3501 would establish a graduated annual fee on institutional investors that acquire more than 10 residential properties, beginning at 10% of a property’s value and increasing for every additional 10 properties owned. Revenue from the fee would be directed into the Illinois Affordable Housing Trust Fund to support public housing development, rental assistance, and pathways to homeownership.
The legislation also requires that residential properties be listed on the open market for at least 90 days before institutional investors can make a purchase. Violations of the waiting period could result in fines of up to $250,000.
Illinois’ proposal aligns with a growing national effort to address corporate consolidation of housing. States such as California and Minnesota have introduced legislation to limit bulk homebuying by institutional investors, while lawmakers at the federal level, including proposals like the 21st Century ROAD to Housing Act which passed the US Senate or the End Hedge Fund Control of American Homes Act introduced in the US House, have sought to restrict large investment firms from acquiring single-family homes. In January 2026, the Trump administration issued an executive order directing federal agencies to limit institutional investor purchases of single-family homes mainly impacting federal programs and prioritize homeownership opportunities for families.
These efforts reflect increasing concern that corporate ownership is contributing to higher home prices, reduced inventory, and decreased access for first-time buyers. Ventura hopes to have Illinois build on this growing national momentum.
SB 3501 was heard on subject matter in the Senate Executive Committee and awaits further action.
