Corporate landlords aren’t the real villain

Posted by Moonagi

3 Comments

  1. Submission Statement

    The discussion centers on the role of institutional investors (corporate landlords) in the U.S. single-family housing market and the implications of the proposed 21st Century ROAD to Housing Act, which aims to restrict these investors from owning too many single-family homes in an effort to improve housing affordability.

    – Institutional investors currently own less than 1% of single-family homes nationwide

    – Institutional investors may reduce rental prices by increasing rental supply, benefiting about one-third of American families who rent.

    – About 7% of new single-family homes are built specifically for rent. The proposed bill’s requirement for institutional investors to sell these homes within seven years could halt this “build-to-rent” activity, potentially reducing housing supply and worsening affordability.

    – Industry leaders warn the bill could have unintended consequences, chilling the construction of new rental homes and limiting affordable housing options.

    – Negative effects linked to high institutional ownership in neighborhoods include modest increases in property, violent, and drug-related crimes (respectively +2%, +4%, and +7%), though these must be weighed against social benefits.

    – Many tenants report positive experiences with corporate landlords, exemplified by one woman, who rates her corporate landlord 4 out of 5 stars and recently saw a rent decrease.

    – Overall, evidence suggests institutional investors are not a major cause of housing price increases, and restricting them, especially in new home construction, may hinder efforts to improve affordability.

  2. Sufficient_Key_5062 on

    There’s still no evidence that the existence of Corporate landlords drives up housing prices. When there is evidence, my position may change.

  3. TheBeanConsortium on

    Best I can do is subsidize housing demand, introduce useless bills to restrict corporate housing, and do some zoning. As a treat.

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