SENATOR MARX LEADS SENATE PASSAGE RESTRICTING PRIVATE EQUITY PRESENCE IN CONNECTICUT HOUSING

Thursday, April 30, 2026

Today, State Senator Martha Marx (D-New London) led the Senate’s passage of legislation restricting private equity presence in Connecticut housing by placing time limits on private equity institutions’ ability to purchase homes as they enter the marketplace.

Under Senate Bill 256, private equity entities would be prohibited from purchasing, acquiring or offering to purchase or acquire part or all of a single- or two-family residence unless it has been listed for sale to the general public for 90 days. Should the residence’s asking price change, that 90-day timer would restart.

The bill defines “private equity entity” as an institutional real estate investor owning at least 10 residences and managing at least $50 million in asserts or an entity receiving funding from such an investor for purchasing homes. The term does not include nonprofit organizations or entities operating under the state’s land bank and land trust program.

“It’s already hard enough to buy a home in this market. We don’t need private equity corporations further skewing the market buying up homes and reducing housing stock in Connecticut,” said Sen. Marx. “This bill gives regular people a fighting chance by putting a three-month timer before private equity can purchase a single- or two-family home. It’s not barring them from investing; it’s making sure they aren’t jumping regular people in line to snap up properties for profit.”

The waiting period does not apply to properties that will be used as the principal residence of a person with ownership interest in the private equity entity seeking to buy it or operated with federal, state or municipal appropriated funds.

Should a private equity entity violate the bill’s provisions, they could face civil action including penalties of up to $250,000.

The law would go into effect October 1.

In written testimony, the Connecticut Citizen Action Group noted Connecticut has become one of the fastest-growing states in the country for shares of single-family homes purchased by corporate investors, and in the last five years, the median price of a single-family home increased by 49% in the state.

Connecticut Voices for Children testified private equity investors often utilize all-cash offers and waive contingencies to appeal to sellers, boxing families out of the marketplace, particularly in neighborhoods historically serving as homeownership entry points.

Before today’s 27-9 Senate vote, the bill previously passed the Housing Committee by a 13-6 vote in April and the Judiciary Committee by a 34-6 vote in April. It next heads to the House for further consideration.