SANTA FE — A Republican-sponsored bill introduced in the New Mexico House would prohibit foreign and out-of-state corporations from purchasing single-family homes for use as investment rental properties, a move supporters say would help preserve housing for New Mexico families and ease pressure on the state’s tight housing market.
Under House Bill 192, sponsored by Rep. Rod Montoya (R-Farmington) and Rep. Catherine Cullen (R-Rio Rancho) foreign corporations, including in-state subsidiaries of foreign corporations, would be prohibited from buying single-family residential property if the intent is to convert it into an investment rental before July 1, 2036. The legislation defines a foreign corporation as a company organized under the laws of another state or a foreign country.
Montoya said corporate acquisition of single-family homes has reduced the number of properties available for residents seeking to buy.
“Too many out-of-state companies have been purchasing single family residences and turning them into short term rentals. This has contributed to a housing shortage in New Mexico,” Montoya said in a statement. “My legislation would put a 10-year moratorium on this practice.”
House Republicans said the proposal reflects their focus on housing affordability and limiting outside interests from driving up prices. Because of restrictions on what legislation can be considered during the current session, the caucus has formally requested a message from the governor to allow the bill to move forward.
The proposal follows recent action at the federal level. In late January, President Donald J. Trump signed an executive order directing federal agencies to take steps to prevent large institutional investors from outbidding individual homebuyers for single-family homes. The order calls on agencies such as the Departments of Treasury and Housing and Urban Development to limit federal programs from facilitating institutional purchases and to prioritize sales to owner-occupant buyers.
According to the White House, the action is intended to “stop Wall Street from competing with Main Street homebuyers” and to protect access to starter homes for American families.
Housing affordability has become a central issue in New Mexico, where rising prices and limited inventory have made it more difficult for first-time buyers to enter the market. Supporters say restricting corporate purchases of single-family homes would help stabilize neighborhoods and keep more properties available for owner-occupants.
Critics of similar proposals in other states have raised concerns about potential legal challenges tied to interstate commerce and whether such restrictions could discourage investment or new housing construction.
The governor’s office has not publicly indicated whether it will issue a message allowing the Legislature to consider the bill during the session.
