Sen. Sherrod Brown proposes bill to curb investment firms buying up single family homes

[irisblue]

Source--https://news.wosu.org/2023-07-31/sherrod-brown-bill-investment-firms-single-family-homes

snip--"There are a lot of factors at play in that, but leaders and community groups say one major reason involves large investment companies buying up affordable single-family homes — eating up inventory for first-time buyers — while sometimes raising rents for tenants and neglecting maintenance.

Major Ohio cities like Columbus, Cleveland and Cincinnati have seen real estate investment trusts buy up large numbers of single family homes in recent years. Data from the Pew Research Group suggests investors bought 33,000 homes across the state in 2021 alone — 21% of Ohio home sales that year."

snip--"But a bill by U.S. Sen. Sherrod Brown (D-OH), called the "Stop Predatory Investing Act," would block federal tax breaks on interest and depreciation for companies that own 50 or more single-family rental homes"



snip--"Brown said the move would make it less profitable for large-scale investors to buy up big numbers of homes and make money on them without doing maintenance. Rental homes already owned by companies, newly constructed houses and those using Low Income Housing Tax Credits would be exempt."


more there.

[blm]

1. They already bought up the housing in college towns.

The rents are so high for these students.

15% of NC State students were unhoused.

[bucolic_frolic]

3. 40 years ago, interest rates at 12% or more, rental homes in college towns were virgin territory

They were so cheap. Who realized it at the time?

[bucolic_frolic]

2. There are a handful of non-profits that buy 'community housing' for low income rentals

and they're forced to compete with this private equity binge. Raise rents and skip maintenance. Bingo for profits in the rental business. Massive Slum Lords. We're all going to live in squalor.

[multigraincracker]

4. 2008 was not that long ago.

Real estate was the best investment. I remember the mantra “there is only so much and they can’t make more” it all fell apart. I bought a house in Ohio for $142K that had been for sale a few years earlier for $365K.
I’m looking to move down state Michigan now and it is crazy now. Lucky I’m in no hurry. With interest rates going up, I see prices starting to come down.

[PlutosHeart]

5. Are they able to

do discovery on all the LLCs doing this under the false guise of "private local people that formed LLCs"? That is happening here. They are always part of larger secret investors.

[Maeve]

6. Repub friend was telling me she hopes he succeeds with this

The house next to her was bought and rented to a family that trashed it (evicted eventually, but...). The company could pay a higher price than first-time buyers and so regular people are getting priced out of the market.