For a long time, there haven’t been enough homes for sale, making it tough for people looking to buy. This has led to more competition and higher prices, leaving many potential buyers with limited and often expensive choices. A new bill in Congress, the End Hedge Fund Control of American Homes Act, could make things better for home buyers. Here’s what you should know.

What is the End Hedge Fund Control of American Homes Act?

Introduced in 2023 by Senator Jeff Merkley and Representative Adam Smith, this bill aims to increase the number of homes available for sale. Big investors, like hedge funds, have been buying up a lot of homes, making it harder for regular buyers. This bill wants to change that.

Sen. Merkley explains, “The housing in our neighborhoods should be homes for people, not profit centers for Wall Street.” The bill has two main parts: first, it stops hedge funds from buying more single-family homes. Second, it requires these funds to sell at least 10% of the homes they own every year for the next 10 years until their portfolios are empty.

As of June 2022, institutional investors owned around 574,000 homes. Putting over half a million homes back on the market would be great for people looking to buy.

Has the End Hedge Fund Control of American Homes Act Been Passed?

As of December 2023, the bill hasn’t become a law yet. Congress needs to agree on it before the President can sign it. We don’t know exactly when this will happen—it could be soon, but it might take some time.

Other Helpful Policies in the Works

Apart from this bill, there are other proposals that could help home buyers:

  1. Neighborhood Homes Investment Act: This could provide $16 billion for building and fixing about 400,000 homes.
  2. First-Time Home Buyer Tax Credit: This might offer up to $15,000 in tax credit for first-time buyers.
  3. Downpayment Toward Equity Act: This could give eligible first-time buyers a $25,000 cash grant for their purchase.

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