Nashville is a hotbed for corporations gobbling up single-family homes.

• One in four homes sold in the first three months of this year was purchased by a corporation, according to data from Redfin. It's one of the highest rates in the nation.

Why it matters: Corporations have been making lucrative cash offers for single-family homes and then converting them into rental properties. It's another layer of complication for Nashville's stressed housing market.

State of play: The percentage of Nashville homes purchased by corporations grew from 17.3% in the first quarter of 2021 to 24.6% in the first quarter of this year.

• Investors' local market share increased even as they bought a smaller number of homes in Q1 2022 compared to the same time frame last year, according to Redfin.

Between the lines: Analysts have found that a handful of investment firms account for a large number of corporate home purchases in the Nashville area.

Driving the news: The issue has caught the attention of Congress. In June, the House Financial Services Committee released a bombshell report based on surveys of the five leading single-family rental (SFR) companies.

For the record: The five companies surveyed were Invitation Homes, American Homes 4 Rent, FirstKey Homes, Progress Residential and Amherst Residential.

• The report found that the companies have experienced explosive growth since 2018, adding more than 76,000 homes to their ownership roster. The companies have especially focused on the South.
• Using complicated financial mechanisms, the companies tend to make cash offers. Between 2018 and 2021, the companies offered $24.7 billion in bonds and other financial instruments to investors.

Of note: Their buying strategies zero in on neighborhoods with significantly larger Black populations than the national average, the report found.

What they're saying: "To meet investor's return expectations, SFR home landlords often prioritize maximizing profits," the congressional report concluded.

• "As a result, evidence suggests that renters in institutionally-owned SFR homes often experience higher rent increases, inflated fees, and diminishing quality of housing over time."

By the numbers: These companies are especially interested in neighborhoods with cheaper homes and higher rents.

• For instance, the average median home value of the companies' top 20 ZIP codes was $198,766 compared to the national average of $229,800. But the average rent in the companies' top 20 ZIP codes was 13% higher than the national average.
• The companies increased rental fees on tenants by 40% over the three-year stretch the survey examined. The number of tenants behind on rent increased from 11.3% in 2018 to 19.1% in 2021.

Here are some of the issues the Metro Council is scheduled to consider during its meeting tonight:

📣 A resolution calling on the Metro Employee Benefit Board to expand benefits for city employees who must travel out of state for "medical treatment unavailable in Tennessee," including abortions.

• Mayor John Cooper and several council members announced the effort last month, after the U.S. Supreme Court overturned Roe v. Wade.
• A ban triggered by the ruling is expected to outlaw almost all abortions in Tennessee within weeks.

🎥 Legislation that would create an entertainment council to support local music and film industries, although there is an ongoing debate among city leaders about the best way to approach that goal.

📄 At-large Councilmember Zulfat Suara's proposal to loosen the requirements to suspend council rules. Members might suspend the rules to consider late-filed legislation, among other matters.

• Under the current rules, it only takes two members' objections to block a rules suspension request. The proposed agenda change would require a higher threshold of five objections.

The man suspected in what the sheriff called the "most significant security breach in Nashville history" is heading to trial this week.

• Authorities accused Alex Friedmann, 53, of planting guns in the downtown jail while it was under construction. He faces a charge of felony vandalism in state court.

Flashback: Investigators said Friedmann, a prison reform advocate, gained access to the new downtown jail in 2019 by posing as a construction worker.

• Nashville Sheriff Daron Hall told reporters Friedmann hid the guns, along with ammunition, as part of plans for a jailbreak.
• Police reported finding 21 firearms linked to the investigation, including assault rifles, in crates that Friedmann allegedly moved to a friend's house. Federal authorities charged him with being a felon in possession of a gun.

The latest: Jury selection took place yesterday, and opening arguments are expected to start this morning.

• The related federal case is still pending, with a trial scheduled later this year.

💰 Tennessean reporter Adam Friedman analyzed the big-ticket donations that are powering state lawmakers' campaigns. (Tennessean, subscription)

The Department of Children's Services is still grappling with hundreds of caseworker vacancies. (NewsChannel 5)

🏨 A new hotel could replace Whiskey Kitchen in the Gulch. (Nashville Business Journal)

🔥 Hot and fresh local job listings.

1. IT Employee Experience at Sonoco.
2. Junior Program Manager at Atrilogy.
3. Senior Marketing Coordinator/Proposal Manager at HDR.

Want more opportunities? Check out our Job Board.

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👋 Adam here. I'm steering the newsletter solo this week, so I'm in need of every extra burst of energy I can get.

• I stopped by the newest Barista Parlor in the Sylvan Supply development for an afternoon boost yesterday.

My take: This spot is well-suited for quick visits to grab a coffee and go. It's not as roomy as the Germantown and East Nashville locations, where folks camp out for long chats or work sessions.

📬 Tell me: I'm looking for other coffee shops, restaurants and bars to take the edge off while Nate is away.

• Reply and let me know what new spot I should try next.