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Kryptos
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A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. 1
#28572211 - 12/06/23 11:07 PM (1 month, 20 days ago) |
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Huh. Wonder for far this will get? Democrats screwing over corporations? What is this madness?
NYT:
Quote:
Democrats in Congress have introduced a bill in both houses of Congress on Tuesday to ban hedge funds from buying and owning single-family homes in the United States.
The bill would require hedge funds, defined as corporations, partnerships or real estate investment trusts that manage funds pooled from investors, to sell off all the single-family homes they own over a 10-year period, and eventually prohibit such companies from owning any single-family homes at all. 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.
If signed into law, the legislation, called the End Hedge Fund Control of American Homes Act of 2023, could upend a growing sector of the housing market, and potentially increase the supply of single-family homes available for individual buyers. 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.
“You have created a situation where ordinary Americans aren’t bidding against other families, they’re bidding against the billionaires of America for these houses,” said Senator Jeff Merkley of Oregon, who introduced the bill with Representative Adam Smith of Washington. “And it’s driving up rents and it’s driving up the home prices.”
In separate legislation, Representatives Jeff Jackson and Alma Adams of North Carolina, both Democrats, introduced the American Neighborhoods Protection Act on Wednesday. That bill would require corporate owners of more than 75 single-family homes to pay an annual fee of $10,000 per home into a housing trust fund to be used as down payment assistance for families.
With a divided Congress, the bills are unlikely to pass into law this session. But Mr. Smith said legislators needed to start a conversation.
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. In one neighborhood in east Charlotte, Wall Street-backed investors bought half of the homes that sold in 2021 and 2022. On one block, all but one home that sold during that period sold in cash to an investor who rented it out.
Wall Street entered the single-family rental market in the aftermath of the 2008 housing crisis, plucking up homes in foreclosure. Its influence has been growing ever since. By June 2022, institutional investors owned 3 percent of all single-family rentals nationwide, but in more affordable markets they owned a considerable market share; in Charlotte, they owned 20 percent, according to the Urban Institute. 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.
“Wealth has become concentrated in the hands of very few people,” Mr. Smith said in a telephone interview. “This is just another way to do that — to commoditize housing so that investors get all of the money.”
Wall Street is not the problem, a lack of new housing is, according to David Howard, the chief executive of the National Rental Home Council, a trade association. The country needs anywhere from 2 million to 6.5 million units of new housing, according to various estimates.
“Policies really need to be shaped and crafted so that they support the production, investment and development of new housing,” Mr. Howard said. “I think bills that work against that ultimately are just going to perpetuate the challenges we’re already facing.”
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GenesisCorrupted
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: Kryptos] 1
#28572244 - 12/06/23 11:51 PM (1 month, 20 days ago) |
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I’ve been asking for this forever. This would outlaw Blackstone. I really doubt this is going to pass. But if it does, it would be such a huge boon for the housing market. It might even make it possible in the future for people to own homes in this country again. What a thought!
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Kryptos
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: GenesisCorrupted]
#28572251 - 12/06/23 11:59 PM (1 month, 20 days ago) |
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Not that long ago, I started seeing ads for some fractional REIT type thing, I think it was the Amazon one, that offered YoY rental growth of between 5-12%.
At 12% annual growth, that means they plan on doubling the rent every five years.
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GenesisCorrupted
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: Kryptos] 1
#28572253 - 12/07/23 12:01 AM (1 month, 20 days ago) |
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We need people to be able to own homes. We need to stop making people get trapped in an endless cycle of poverty because they can’t afford to own anything.
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Kryptos
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: GenesisCorrupted]
#28572257 - 12/07/23 12:02 AM (1 month, 20 days ago) |
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Yeah, but could you imagine 12% annual investment returns?
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CHeifM4sterDiezL
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: Kryptos] 1
#28572497 - 12/07/23 08:10 AM (1 month, 20 days ago) |
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They need to nip this in thr bud for sure. When I first heard about these my first thought was this is either the biggest scam in history or thing that totally breaks the housing market and needs a trillion dollar bail out or both
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CHeifM4sterDiezL
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: Kryptos] 1
#28572501 - 12/07/23 08:11 AM (1 month, 20 days ago) |
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Quote:
Kryptos said: Yeah, but could you imagine 12% annual investment returns?
Not in real estate not in some massive bloated conglomerate sell people the dream of "becoming a landlord for as little as $100" through an app
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The Ecstatic
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: CHeifM4sterDiezL] 1
#28572530 - 12/07/23 08:34 AM (1 month, 20 days ago) |
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Isn’t the S&P averaging like 10-12% per year?
Regardless, this has zero chance of passing.
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CHeifM4sterDiezL
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: The Ecstatic]
#28572561 - 12/07/23 08:58 AM (1 month, 20 days ago) |
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The historical strength of the broader market have very little to do with buying fractional shares in some REIT sector fund dumb money scam where they likely tuck in all sorts of carefully worded user agreements in the face of little to no regulation in order to saddle you with all the risk and no real ownership or equity.
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The Ecstatic
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: CHeifM4sterDiezL]
#28572570 - 12/07/23 09:04 AM (1 month, 20 days ago) |
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Agreed, I’m just saying 12% annual growth isn’t some astronomical figure.
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CHeifM4sterDiezL
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: The Ecstatic]
#28572575 - 12/07/23 09:09 AM (1 month, 20 days ago) |
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You know what I'm realizing too is that this shit has already been going on for decades on the corporate level and it's a major part of the problem. The only reason these massive entities work is that their pockets are so deep it doesn't matter that they're constantly pissing money against the wall plus i mean what the hell they just charge whatever they want to cover all the fuck up anyway because the market is so fucked up and everyone is just doing it
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CHeifM4sterDiezL
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: CHeifM4sterDiezL]
#28572586 - 12/07/23 09:16 AM (1 month, 20 days ago) |
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Honestly this gives me the idea for so many big big scams/loopholes
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Kryptos
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: The Ecstatic]
#28572653 - 12/07/23 10:40 AM (1 month, 20 days ago) |
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Quote:
The Ecstatic said: Isn’t the S&P averaging like 10-12% per year?
Regardless, this has zero chance of passing.
Maybe on a good year
Even if it passes, I could see this being killed by SCOTUS immediately. Hell, they're already litigating a wealth tax.
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ballsalsa
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: Kryptos] 1
#28572747 - 12/07/23 12:00 PM (1 month, 20 days ago) |
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--------------------
Like cannabis topics? Read my cannabis blog here
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The Ecstatic
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: ballsalsa]
#28572834 - 12/07/23 12:58 PM (1 month, 20 days ago) |
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Sure he did a bunch of good things for working people, but at the same time he made life worse for bad people so who’s to say if it was worth it? Very controversial figure.
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Joh.Ke
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: The Ecstatic] 1
#28572898 - 12/07/23 02:03 PM (1 month, 20 days ago) |
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Quote:
The Ecstatic said:
Regardless, this has zero chance of passing.
I don't know if it will pass, but it might get people to start talking about corporations owning a disproportionate amount of resources (such as money and homes), so I see it as a good thing.
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GenesisCorrupted
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: Joh.Ke]
#28572900 - 12/07/23 02:06 PM (1 month, 20 days ago) |
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This is definitely nothing but a good thing to have under discussion. Corporations should not be able to steal the chance of people buying a home in our country. It’s utterly despicable. The problem is those same billionaires are shoving our congressmans pockets full of dirty dollar bills. So the odds of this passing are minute. It would be a huge win with the constituency though. Nobody wants the housing market to be terrible in this country except the people profiting off of all the poor people that can’t afford houses.
Edited by GenesisCorrupted (12/07/23 03:06 PM)
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SirTripAlot
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: The Ecstatic]
#28572930 - 12/07/23 02:38 PM (1 month, 20 days ago) |
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Quote:
The Ecstatic said: Sure he did a bunch of good things for working people, but at the same time he made life worse for bad people so who’s to say if it was worth it? Very controversial figure.
Thats a leap.
-------------------- “I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain.”
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ballsalsa
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: SirTripAlot] 1
#28572943 - 12/07/23 02:55 PM (1 month, 20 days ago) |
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Dude wasn't perfect by any stretch but he did the Lord's work with regard to landlords
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SirTripAlot
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: ballsalsa]
#28573066 - 12/07/23 04:30 PM (1 month, 20 days ago) |
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The Great Leap Forward
-------------------- “I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain.”
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The Ecstatic
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Re: A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States. [Re: Joh.Ke]
#28573191 - 12/07/23 05:45 PM (1 month, 20 days ago) |
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Quote:
Joh.Ke said:
Quote:
The Ecstatic said:
Regardless, this has zero chance of passing.
I don't know if it will pass, but it might get people to start talking about corporations owning a disproportionate amount of resources (such as money and homes), so I see it as a good thing.
Public support for these actions is largely irrelevant in our society.
How many want higher taxes on the rich Universal healthcare A ceasefire in Gaza
All non-starters.
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