New Legislation Proposes to Take Wall Street Out of the Housing Market
New Legislation Proposes to Take Wall Street Out of the Housing Market
A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States.
This has, like, a zero percent chance of passing.
Far too many on both sides are either controlled by “hedge fund” PACs or just getting bribed. This would take money out of the pockets of too many congresspeople for it to actually pass.
I’d really love to be wrong, here.
I would love to actually own a home before I die instead of living in the rental hellscape we have now
This is the best summary I could come up with:
During the decade-long phaseout period, the bill would impose stiff tax penalties, with the proceeds reserved for down-payment assistance for individuals looking to buy homes from corporate owners.
Homeownership, long a cornerstone of generational wealth in the United States, is increasingly out of reach for Americans as home prices and interest rates soar.
In separate legislation, Representatives Jeff Jackson and Alma Adams of North Carolina, both Democrats, introduced the American Neighborhoods Protection Act on Wednesday.
The bills were introduced three months after The New York Times published a story examining the impact of corporate-backed investment on Charlotte, N.C., where, in 2022, investors purchased 17 percent of the city’s homes in cash, often outcompeting first-time buyers who rely heavily on mortgages.
In a pattern repeated in cities around the country, corporations focused on modestly priced houses, frequently in neighborhoods with large Black and Latino populations, and converted the properties to rentals.
Even as the housing market slows, investors have remained active, buying 26 percent of the single-family homes that sold in June 2023, according to CoreLogic, a data analytics company.
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Yes. Necessary if there's a crash or higher interest rates or inventory will be sucked up into corporate cash paying hands, instead of benefitting people who could break into the market. Should be expanded to other corporate buyers.