On today’s show we are talking about the recently introduced piece of legislation in the US Congress dated December 5. There is a corresponding bill that was introduced in the Senate by Democratic members of both the house and the senate.
The Congressional Bill is called the “End Hedge Fund Control of American Homes Act”.
The second bill is a Senate Bill called the American Neighborhoods Protection act.
The Senate version of the bill would limit ownership to 75 single family homes. Those owners who continue to hold these properties shall be subject to an annual tax of $10,000 per unit for each year that they hold the property. The taxes collected by the IRS shall go into a newly established fund that is designed to help create and subsidize affordable housing.
Single family homes in some markets are experiencing a large number of transactions being purchased by large corporate buyers. But still they represent a tiny fraction of the transactions in the market.
The stories being reported widely across the internet of large corporate buys purchasing a dominant share of homes in the market is simply false. Are big Wall Street investors really buying 44% of homes this year? The answer is no — not even close.
———–
Host: Victor Menasce
email: podcast@victorjm.com
