Part 2/10:
Proponents of the bill argue that the current trend of Wall Street and major financial firms buying up large swaths of single-family homes is detrimental to average Americans. As the bill’s sponsors, Representatives Adam Smith (D-WA) and Jeff Merkley (D-OR), emphasize, housing should serve the needs of families, not be treated as profit centers for big investment firms. They contend that extensive institutional ownership drives up both rents and home prices, making housing less affordable.
The bill aims to:
Ban hedge funds and similar large investors from owning new single-family homes.
Require existing investors to sell at least 10% of their current holdings each year, culminating in a total phase-out over ten years.