Sykes, Evans Introduce Bill to Crack Down on Corporate Investors Buying Up Local Homes, Driving Up Housing Prices
Legislation Would Restrict Tax Breaks for Private Equity Firms and Other Large Outside Investors that Buy Up Homes in Local Communities
AKRON, OH – U.S. Representatives Emilia Sykes (OH-13) and Dwight Evans (PA-03) introduce the Stop Predatory Investing Act to restrict tax breaks for big corporate investors that buy up homes, often driving up local housing prices and rents. This legislation would prohibit an investor who acquires 50 or more single-family rental homes from deducting interest or depreciation on those properties. The bill restricts tax breaks for private equity and large investors that currently give them an advantage in the market for affordable single-family homes, and helps make homeownership a reality for more families across the country.
“With home prices reaching record highs, many Ohioans are struggling to afford homeownership and some are being priced out of the neighborhoods they’ve lived in all of their lives. It’s unfair for homeowners to have to compete with deep-pocketed investors who are adding to their real estate portfolios, meanwhile they drive up rents and reduce the housing supply while receiving generous tax breaks,” said Rep. Sykes. “My bill would prevent corporate landlords from driving up local home prices and restore power to working people who want to buy a home to live and raise their families in.”
“As a member of the Ways and Means Committee that oversees tax legislation, I appreciate Representative Sykes’ leadership on this issue and I’m proud to co-lead this bill,” said Rep. Evans. “I think the federal government shouldn’t be subsidizing large investors’ mass buying of single-family homes, just like we don’t want to subsidize mass purchasers buying up concert tickets. Working people deserve a fair chance at buying affordable homes, and this bill would be an important tool to add to the housing toolbox!”
Private equity and other Wall Street-backed outside investors are a growing problem in local housing markets, and contribute to pushing home ownership further out of reach for many working families. In 2021, 16% of homes in Cleveland were purchased by investors, with one zip code reaching 70%. In Cincinnati, they bought 15% of homes, reaching nearly 50% of homes in some communities. On one street, a single company bought 29 homes. Large investors use technology and all-cash offers to outcompete individual buyers. And because investors often target the same types of affordable starter homes as first-time homebuyers, they push families out of the housing market.
The Stop Predatory Investing Act is endorsed by Enterprise Community Partners, Local Initiatives Support Corporation (LISC), National Community Stabilization Trust (NCST), and National Housing Law Project (NHLP).
Rep. Sykes is Vice Chair of the New Democrat Coalition Affordable Housing Task Force. Earlier this year, Rep. Sykes hosted U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge in Ohio’s 13th District to highlight HUD’s investments in local efforts to improve access to safe, affordable housing.