Image Credit: knoxcountytn.gov
Tennessee Conservative News [By Olivia Lupia] –
Earlier this week, the Knox County Commission passed the first reading of the “Knox County Homes Not Hedge Funds Ordinance”, a proposal to prevent private investment groups from purchasing large quantities of single-family homes for rental purposes.
The ordinance comes after the Tennessee General Assembly failed to pass a similar bill earlier this year, the “Homes Not Hedge Funds Act”, which was sponsored by Democrats though it bore a striking resemblance to a proposal by President Trump looking to protect single family homes from corporate ownership.
The bill was picking up some bipartisan support amongst Tennessee lawmakers, but it ultimately failed in committee when it received no second for discussion due to Democrat infighting over the results of the special Congressional District 7 primary last fall.
Knox County’s ordinance cites the failed bill and says it will offer similar protections, arguing that when large institutional investors buy huge numbers of houses and convert them to rental properties it lowers the supply for everyone else, driving prices up and making it harder for county residents to become homeowners.
“Homeownership is one of the most reliable ways for families to build intergenerational wealth and economic stability,” it reads. “Knox County does not wish to restrict the ordinary ownership of property but recognizes a compelling local interest in preventing the manipulation of the local housing market to the detriment of working families and prospective homeowners.”
The proposal would stop any out-of-state people or entities like hedge funds, private equity groups, and limited partnerships from buying more than 100 single family homes to use as rentals, but builds in several exceptions including Tennessee businesses, publicly traded companies worth less than $1 billion, government entities, affordable housing initiatives, and anyone buying homes as part of a qualifying build-to-rent program.
It would also not apply to those who already own more than 100 rental homes in the county, provided they do not acquire any additional houses.
According to a 2025 State of Housing Report from East Tennessee Realtors, investor activity in the Knoxville housing market accounted for 8.8% of home sales in 2024, which was noted as being a decrease from a peak of 14% in 2022 and closer to pre-covid levels seen in 2019.
“The sharp drop from 2022 may reflect tighter financing conditions, higher borrowing costs, or diminished profit margins amid elevated home prices. Meanwhile, the share of homes purchased with cash has remained elevated, reaching 20.5% in 2024, signaling continued demand from equity-rich buyers, retirees, second-home purchasers, or institutional actors,” the report expounds.
Passing 9-2 on the first reading, the Knox County ordinance will take effect if it passes a second reading, which seems likely given the majority support it carried on round one, though amendments and adjustments could still be made as the legislation works its way through the local government process.
About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.
