The Blubber

Elizabeth Warren has said:

Since the Great Recession, institutional investors have bought up hundreds of thousands of single-family homes, hoovering up a significant chunk of the housing supply and hiking rents by double digit margins.

Democratic legislators in both the U.S. House of Representatives and the U.S. Senate have introduced bills in their respective chambers aiming to prohibit hedge funds from participating in the single-family housing market. They argue that such participation exacerbates supply and affordability challenges.

The Senate bill, named the “End Hedge Fund Control of American Homes Act of 2023,” was introduced by Sen. Jeff Merkley of Oregon, while the House version was introduced by Rep. Adam Smith of Washington. Another bill, the “American Neighborhoods Protection Act,” introduced by Democratic Reps. Jeff Jackson and Alma Adams of North Carolina, proposes an annual fee of $10,000 per home for corporate owners of more than 75 single-family homes. The fee would contribute to a housing trust fund for down payment assistance.

While acknowledging the low likelihood of passage, lawmakers argue that Congress needs to address the issue of large investors impacting the single-family housing market. Data indicates that institutional investors own a significant portion of single-family rentals, with some arguing that policies should focus on supporting new housing development rather than restricting investor activity.

Read more: https://unusualwhales.com/news/bill-has-been-introduced-in-the-house-and-senate-that-would-prevent-hedge-funds-from-owning-single-family-houses-in-the-united-states