Aspirational Americans are being priced out of homes. A recent poll found that 65% of Americans believe they will not be able to purchase a home “in the foreseeable future.” Singles who want to put down roots and families who want to grow are growing discouraged about their prospects. So when the Senate passed a bipartisan housing bill 89-10 in March, there was reason for cautious optimism. Congress seemed ready to legislate, for a change.But the Senate included a harmful provision that would stymie the construction of new homes.Buried in an otherwise constructive package that streamlines environmental reviews, modernizes manufactured housing rules, and updates multifamily financing tools is a provision bearing the unmistakable fingerprints of Sen. Elizabeth Warren (D-MA) and her colleagues in the Congressional Progressive Caucus. It mandates that institutional investors must sell build-to-rent homes within seven years of construction.
OPINION: ELIZABETH WARREN’S HOUSING BILL IS ALREADY STOPPING DEVELOPMENTS. HOUSE AMENDMENTS FIX IT
This provision is a knee-jerk reaction to the current moral panic over investor-owned housing. A false narrative has entered the housing discussion in which the culprits are big institutional investors who have bought up all the available housing. It doesn’t matter that the facts don’t bear this out — it only matters that the narrative has gained traction.
