Next City : Meet the Bill To Ban Hedge Funds From Owning Single-Family Homes

A story from Next City profiles the End Hedge Fund Control of American Homes Act, a bill supported by the Private Equity Stakeholder Project.  

Next City, March 28, 2024: “Meet the Bill To Ban Hedge Funds From Owning Single-Family Homes”

The bill, which was introduced by Senator Jeff Merkley and Representative Adam Smith, aims to address the impact of private equity and hedge fund ownership of single-family homes on the housing market. As the United States contends with an affordable housing crisis and first-time homebuyers struggle to outcompete corporate buyers, the bill represents an important step toward addressing such issues.

As written, the bill imposes tax penalties on large corporate landlords to discourage their ownership of single-family residences. Corporate landlords such as private equity firms would be required to divest their single family residences within ten years of the bill’s passage. 

Private equity investments in the housing market have been the subject of intense scrutiny from the media, regulators, and policymakers. In August, the Department of Justice announced a lawsuit against RealPage, a real estate software company owned by private equity firm Thoma Bravo, alleging the company enabled landlords to engage in price-fixing and artificially inflate rents.

For more on policy recommendations for regulating corporate landlords, read our November 2023 report, “Tools for Tackling Corporate Landlords.”