Democrats Unveil Bill to Ban Hedge Funds From Owning Single-Family Homes Amid Housing Crisis
The bill would force hedge funds to sell all of their single-family home stock over the next 10 years.
truthout.org Democrats have introduced bicameral legislation this week to take a step toward getting Wall Street out of the housing market amid a crisis during which house prices have soared to record highs.
The bill would ban hedge funds from buying and owning single-family homes. The legislation would require hedge funds to sell off their stock of single-family homes over the next 10 years and would then implement an outright ban. For every single-family home a hedge fund owns over a certain limit each year, it would be subject to a tax penalty, the revenues from which would be used for down payment assistance programs for those seeking to buy their first home from a hedge fund.
The End Hedge Fund Control of American Homes Act of 2023 was introduced by Rep. Adam Smith (D-Washington) and Sen. Jeff Merkley (D-Oregon). The lawmakers say that the only purpose for hedge funds to own homes is to make profits and that such investing has only made it more difficult for working class Americans to afford to buy a home.
“In 1971, my father was able to buy the house I grew up in for $15,000 on the salary he earned as a baggage handler at SeaTac Airport. That same house would cost nearly $500,000 today yet wages for workers like my father have not kept up,” Smith said in a statement. “Congress must take action to crack down on corporate greed and get hedge funds out of the single-family home market.”
The bill, if passed, could provide some rare relief to people seeking to buy a home. According to National Association of Realtors data, the median price of a single-family home in November 2019 was $271,300 — while, in November of this year, the median home price was $400,000.
