Wall Street went on a home-buying spree. Now, more lawmakers want to stop it from ever happening again.
Democrats in the U.S. Senate and House have sponsored legislation that would force large owners of single-family homes to sell houses to family buyers. A Republican’s bill in the Ohio state legislature aims to drive out institutional owners through heavy taxation.
Lawmakers in Nebraska, California, New York, Minnesota and North Carolina are among those proposing similar laws. While homeowner associations for years have sought to stop investors from buying and renting out houses in their neighborhoods, the legislative proposals represent a new effort by elected officials to regulate Wall Street’s appetite for single-family homes.
These lawmakers say that investors that have scooped up hundreds of thousands of houses to rent out are contributing to the dearth of homes for sale and driving up home prices. They argue that investor buying has made it harder for first-time buyers to compete with Wall Street-backed investment firms and their all-cash offers.
This is a simple fix, change the tax laws. In Italy, a primary homestead enjoys a far lower tax rate than a non-primary ("second") home. The Italian law is specifically aimed to give affordability to homeowners not just in tax savings, but it also has a moderating effect on homebuying and holding costs for investors or second home owners.
@UnityEdConstitution2wks2W
The clowns in congress should look at those ILLEGALLY in the US. Get rid of 12 MILLION illegals and see how much housing is available.
@DeerAlexandraSocialist2wks2W
Removing them might result in a short term increase but would lead to a longer term decrease in housing supply. One of the major issues with housing is a lack of inventory due to reduced building following the Great Recession. The bureau of labor statistics recently found that more than half of all construction laborers are Hispanic. They also make up about 60% of painters, 50% of landscapers, and 40% of carpenters.
Not all Hispanics construction workers are illegal immigrants of course but it’s an open secret that hiring illegal immigrants is widely tolerated in the construction industry.
@P0pul1stCalVeteran2wks2W
I predicted this when Congress meddled with the tax code to cap the deduction for SALT. Now only businesses get the full deduction as business expenses, regular home owners don’t . That gives businesses more available cash flow to buy homes. Solution? Take away the deduction for businesses or give it back to ordinary people.
@ElectionPloverDemocrat2wks2W
Is the SALT the problem... or is it mortgage interest deduction? Mortgage interest deduction for most home owners (individuals, not businesses) is a non-factor due to the increased standard deduction. For Home Owners (individuals) isn't the SALT just local property taxes?
@P0pul1stCalVeteran2wks2W
What matters is equalization. I don't claim to know how everything breaks down, but I suspect mortgage interest is a factor that is not equalized by the standard deduction. As it is, businesses get to amortize real estate where home owners can't, so they already have an edge.
@B1cameralHankPatriot2wks2W
The real problem was government printing money and it was institutions that had access to nearly unlimited amounts of it.
Let’s talk about the student housing business these firms have gotten into. Want to know where student loan dollars are going? Luxury student rentals with pools, gyms and granite counter tops brought to you by Blackstone and the like.
@MorbidMantisLibertarian2wks2W
The real problem is government distorting markets. There are tax incentives for companies to own rental property. Take away the tax incentives for sfh and problem solved.
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