Lawmakers say investors that scooped up hundreds of thousands of houses to rent out are driving up home prices

Wall Street went on a home-buying spree. Now, more lawmakers want to stop it from ever happening again.

Democrats in the U.S. Senate and House have sponsored legislation that would force large owners of single-family homes to sell houses to family buyers. A Republican’s bill in the Ohio state legislature aims to drive out institutional owners through heavy taxation.

Lawmakers in Nebraska, California, New York, Minnesota and North Carolina are among those proposing similar laws.

While homeowner associations for years have sought to stop investors from buying and renting out houses in their neighborhoods, the legislative proposals represent a new effort by elected officials to regulate Wall Street’s appetite for single-family homes.

These lawmakers say that investors that have scooped up hundreds of thousands of houses to rent out are contributing to the dearth of homes for sale and driving up home prices. They argue that investor buying has made it harder for first-time buyers to compete with Wall Street-backed investment firms and their all-cash offers.

Non-paywall link

  • disguy_ovahea@lemmy.world
    13·
    6 months ago

    That article is light on the details. The most unbiased data I could find is from July 2023. Searching percent of REIT purchased or owned single-family residences yields countless results from non-credible websites.

    As a result, investors still purchased 27 percent of single-family homes in the first quarter of this year. [2023]

    In the fourth quarter of 2022, investors purchased nearly one-third of homes sold in the bottom third by metro area sales price compared to about one-quarter of homes that sold in the top third.

    https://www.jchs.harvard.edu/blog/8-facts-about-investor-activity-single-family-rental-market

    It seems like it’s not the percent of all residences that is causing the constraint, but that REITs are specifically targeting the most affordable homes in metro and suburban areas.

    • Asafum@feddit.nl
      4·
      6 months ago

      Makes sense, affordable homes so their investment is less, affordable areas so they’re low income and will be dependent on your now rented house, and the markets are rigged thanks to those rent price websites so they’ll charge like 2x or more of what the mortgage price would have been as those are typical rent prices now…

      To steal a George Carlin transition: “and another group of people I’d love to drag into the woods and disembowel with a wooden cooking spoon…”

      Fucking wall street… They’re the reason I have to quit my job and leave the state my whole family lives in…

        • Asafum@feddit.nl
          2·
          6 months ago

          I don’t want to be too far from family so possibly Connecticut, or if I can somehow find something within my state then possibly “upstate” NY but I can’t seem to find much here that also has decent work opportunities close by. At the moment I’m stuck on super overpriced long Island so I definitely need to leave.

          • disguy_ovahea@lemmy.world
            2·
            6 months ago

            Westchester here. I feel your pain. Thinking about braving the cold in Buffalo. Rent and cost of living is insane by comparison.