KNOXVILLE, Tenn. (WOKI / WVLT)– Knox County leaders are considering a proposal aimed at limiting the influence of large-scale residential investors in the local housing market.
The measure, scheduled for a first reading before the Knox County Commission on July 27, would establish a cap on investors owning more than 100 single-family homes in the county. The proposal mirrors a federal effort targeting institutional homeownership but sets a significantly lower threshold than the federal proposal’s 350-home limit.
Supporters say the measure is intended to address concerns that large investment groups have an unfair advantage over traditional homebuyers and smaller landlords.
Local real estate owner Todd Jewell said Knoxville’s housing market includes more investors who fall into the 100-home category than the higher federal threshold.
“We do have more investors that are at a hundred, not 350,” Jewell said. “So stacking that on top of the federal mandate, I think would be probably a positive. It would definitely help. That would have an impact here in the Knoxville area.”
Concerns Over Out-of-State Investment
Some local property owners say large investment firms are making it increasingly difficult for residents and smaller investors to purchase homes.
Jack Scarbrough, who owns and rents four homes in Knox County, said out-of-state buyers often submit offers well above market value.
“You’ve got big wigs coming from out-of-state that are throwing $100,000 more than a property’s worth,” Scarbrough said.
Scarbrough believes locally owned rental properties provide tenants with a more personal experience than larger corporate landlords.
“I’m actually able to see my clients face-to-face,” he said. “Compared to an out-of-state company, they’re not getting another client on a personal level.”
Impact Likely Limited for Smaller Landlords
Jewell noted that most rental property owners in Knox County would not be impacted by the proposal.
“A lot of our investors here are people who own one, two, three, five, six rental homes,” he said.
Scarbrough also voiced support for the proposal, suggesting it targets only the largest investors.
“It’s more than fair,” Scarbrough said. “Most people don’t get more than 10 properties. And you’re talking big wigs that are really pumping the properties out.”
Commission Discussion Ahead
The proposal is expected to be formally discussed during the Knox County Commission’s July 27 meeting, where commissioners will consider the measure on first reading.
If approved, supporters say the policy could become part of broader efforts to improve housing accessibility and affordability in Knox County by limiting large-scale ownership of single-family homes.
