Large corporate buyers of single-family homes are drawing increasing scrutiny in Washington, with lawmakers from both parties advancing proposals aimed at addressing housing affordability.
Both Democrats in Congress and President Donald Trump have recently called for new restrictions on large institutional landlords that buy and rent out single-family homes, arguing the changes could help families compete for homes.
Nationally, however, the share of homes owned or purchased by large investors remains relatively small. For regular homebuyers competing in a tight market, limiting those investors might not ease bidding wars or meaningfully lower prices in most markets outside of a handful of Sun Belt metros where institutional ownership is concentrated, economists tell CNBC Make It.
On Feb. 24, Democratic Senators Elizabeth Warren of Massachusetts and Jeff Merkley of Oregon introduced legislation that would strip companies owning 50 or more single-family rental homes of certain federal tax benefits, including depreciation and mortgage interest deductions, and bar corporations from owning more than 30% of homes in a local market.
To encourage new construction, the bill would temporarily exempt new multifamily projects and the rehabilitation of otherwise uninhabitable properties.
