Home Act | Congressman Steven Horsford
Cracking the price hike in the housing market
Click here to read more about the bill at Congress.gov.
Problem: Last year, large institutional investors bought more homes in America’s top metropolitan areas than in the previous twenty years.
On average, non-occupied investors bought about one in seven homes, and in typical housing markets that number rises to one in four. As rental rates rise across the country, housing is becoming increasingly unaffordable for everyday Americans.
With at least a decade of divestment since the 2008 housing market crash, America’s supply of homes cannot meet growing demand. Large institutional investors raise billions of dollars in capital to make extravagant cash offers on homes, and these investments have been concentrated in older, middle-income neighborhoods with higher concentrations of Asian, Latinx and black residents. Homes owned by institutional investors may never hit the housing market. By raising rental rates and reducing homes available to American households, non-occupied investors are pushing the American dream of homeownership out of reach for many.
The solution: Institutional oversight in the housing market to ensure transparency and fair competition for Americans looking to purchase or live in their homes.
The Housing Oversight and Mitigation Exploitation Act will ensure that consumers are protected from market manipulation by empowering the Department of Housing and Urban Development.
Specifically, the Housing Oversight and Mitigating Exploration Act makes it illegal for any person to rent or sell a housing unit at an unreasonable price during a period of a housing emergency. The President would not be able to declare a housing emergency, so the person could either raise rental rates or raise house prices to unreasonable levels or take further advantage of the circumstances. Directs the Secretary of Housing and Urban Development to conduct an inquiry to determine whether prices are being manipulated by artificially reducing housing capacity or through other pricing practices. A report to Congress 270 days after the act’s passage, including a long-term strategy for addressing housing market manipulation, and an analysis of how the housing market is impacted by non-occupied investors and minorities affects communities. HUD secretary to monitor home purchases within housing markets across country to investigate: Institute investors who individually purchased more than 5 percent of single-family housing provided for sale in any market in 3 years Is. If, in aggregate, institutional investors have purchased more than 25 percent of the single-family housing provided for sale in any market over a 1-year period.