Institutional investor purchases of homes in focus amid housing bill debate
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TL;DR
- The 21st Century ROAD to Housing Act, recently passed by the House, contains a provision to ban large institutional investors from buying single-family homes.
- Supporters, including President Trump, argue this ban will allow individuals to compete better in the housing market.
- Critics like the Competitive Enterprise Institute argue the ban won't address the root causes of housing shortages and could increase costs.
- The bill also considered and then removed a provision that would have required investors in build-to-rent homes to sell them within seven years, a move industry groups opposed.
- Institutional investment in single-family homes increased significantly after the 2008 financial crisis, concentrated in specific metro areas like Atlanta.
- The definition of a "large institutional investor" in the bill has evolved, with the current threshold set at controlling over 350 single-family homes.