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Earlier this month, in response to the growing U.S. housing affordability crisis, Democratic members of both houses of Congress introduced legislation that, if passed, would ban hedge funds from buying into the single-family home market, HousingWire’s Chris Crow reported. Ta. They would also be required to sell all single-family homes they own over a 10-year period.
Oregon Sen. Jeff Merkley has introduced the “Removal of Hedge Fund Regulation on American Housing Act of 2023” to the Senate. Representative Adam Smith of Washington introduced the House version.
Crowe’s article also notes that North Carolina Democratic Congressmen Jeff Jackson and Alma Adams are encouraging companies that own 75 or more single-family homes to pay $10,000 per year per home into the Housing Trust Fund to help with down payments. Use.
As of June 22, institutional investors owned 3 percent of single-family rental properties nationwide, according to the Urban Institute, but in more affordable markets, institutional investors have a much higher market share. It has become. The top three are Atlanta (28.6 percent), Jacksonville (24.2 percent) and Charlotte (20.1 percent). Just recently, data analytics firm CoreLogic reported that despite the housing market downturn, investors are busy, purchasing nearly 26% of single-family homes sold in June 2023.
“We’ve created a situation where ordinary Americans are competing for housing not with other families, but with America’s billionaires,” Sen. Merkley told the New York Times. . “And that’s driving up rents and driving up home prices.”
Lawmakers acknowledge that the bill is unlikely to pass given the current state of Congress. Still, Congress has to start talking about this issue,” Congressman Smith said in an interview with the Times.
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