YoBuckStopsHereDemocrats Unveil Bill to Ban Hedge Funds From Owning Single-Family Homes Amid Housing Crisis
BoddhisatvaGood, now find a way to make the Republicans let it pass.
So you say you’re a dreamer. Well you’re not the only one. —would be great if people could get into a 1200sf starter home for under 500k in my area.
If they just ban some human rights I’m sure they’ll come around.
See! Democrats never do anything!!! -_-
This is one of those things where we start killing everyone who votes against it.
XanthraxWhat about banks, real-estate, and just random big companies?
I thought the same. Is there data somewhere to suggest hedge funds specifically own more than the others?
I have no idea who down voted you. Let me see…
Hedge funds have been disproportionate buyers of single-family homes over the last few years.
Traditionally, real estate investment funds didn’t own single family homes to rent. Most companies with single family home exposure were builders.
There’s still a ton of other multi-family and apartment REITs out there, but I believe they’re not being targetting both because they’ve existed for a long while and also because usually a person looking for a family home doesn’t buy the entire apartment building.
pelespiritThere are companies that are crowd funding buying homes too, where the person is the investor and earns dividends on it. It’s getting insane.
Link to what? My friend works for one, lol.
Link for evidence. Your friends aren’t trustworthy since the coffee shop incident.
Isn’t that what a timeshare is? Those have been around forever
You don’t get dividends on a timeshare. You just get the right to (theoretically) vacation there.
Out in Silicon Valley people were pitching these all the time. They’re also popular with medical doctors from what I hear. I got pitched by a guy driving a top of the line Tesla Model S as an Uber driver years ago - he said he was driving for Uber just to meet potential investors.
Flying SquidSlightly OT, but recently (at a cannabis dispensary oddly enough), I overheard a guy in full hunting camo talk about how he day traded in the deer stand. The investor class is fucking weird.
Sucks when your deer blind’s wifi gets interference from the asshole in the other deer blind who doesn’t set his wifi channels correctly.
Banks usually own them only for the time they’re for sale after being seized from an owner that defaulted on their payment, no?
Directly, no. Indirectly, yes.
There’s always got to be loop holes so they can keep doing it while making it look like they did something
Baby steps
I’m not sure this will bring prices down
PoggervaniaProbably not for a while if it even does, but at least it’s a step in the right direction towards not having everything owned by Blackrock.
SupercriticalWell if the law includes a clause that hedge funds need to sell of their assets, then flooding the market like that may bring down prices. However it could also trigger a bubble burst in the housing market. I’m interested to see how this is concerned
They have a 10 year window. There will be no flooding. 4 years would have been better
That’s good to know
I assume if they had to all sell their single family properties it would cause prices to fall or they would scrape the houses lol to redevelop
That should drop prices, but of course there’s the Gen Xers like me who’d lose home value. Before you say we’re entitled, don’t forget our only savings at this point is our home.
Still, it’s such a stupid situation, and America is a fucking hard place. Someone’s always getting fucked over. Might as well be me (again)
Before you say we’re entitled, don’t forget our only savings at this point is our home.
Small price to pay.
Infinitely small price to pay. Looks like some other folks need to grab their boot straps.
Right after I wrote that I had to check my entitlement and realize a lot of people have nothing.
So y’all should tee off on me, I deserve it.
I'm not one to tee off on people who show growth and empathy.
Lemmys most reasonable poster.
I think it’s always important to consider others perspective thanks for sharing your experience. Really sucks because the companies would probably get some kind of subsidy or kickback meanwhile you only get fucked.
government: “We’ll reward you handsomely for putting all of these people on the streets!”
People who partook in the FOMO feeding frenzy should not be immune to bubble bursting, even if legislation needs to be part of the mechanism. Home values shooting up 50-100% in under 5 years was a clear sign of bad market conditions.
On the plus side, loan regulations are much improved over the 2008 crash, so if you bought a house, you’re likely able to continue paying the mortgage even if your home is worth less than when you bought it.
RivalarrivalMillennial here: what’s a “savings”?
Just build homes.
Just start your own business and bank!!
Just vote people who are YIMBY.
this isn’t for you. this is for our children and their children.
If we continue this trend no one will own anything. life will be a subscription model.
My concern is that it will cause prices to go up and fewer new home to be built.
interest rates are already going down.
houses aren’t diamonds, intentionally reducing the supply to increase prices is a violation of our basic right to housing.
blazeraIts a good thing. But kind of weirdly specific to only appy to hedge funds. The problem is homes being hoarded as investment vehicles instead of places to live, thats gonna apply to any kind of investment firm.
It’s a start. We can always add more regulations later.
BraveSirZaphodThe problem is homes being hoarded as investment vehicles instead of places to live, thats gonna apply to any kind of investment firm.
The awkward thing that people don't like to talk about is that this also applies to individuals and how they then set regional housing regulation. As of now, individual families are strongly incentivized to do anything possible to increase the value of their own homes, which includes blocking any new construction and setting onerous requirements that exclude poor and other "undesirable" people from moving into the area.
Fundamentally, you cannot have housing be a super productive investment asset AND have it be affordable. These are fundamentally opposite goals, and it applies to individual families just as much as it applies to hedge funds. A town cannot hope to have its property values go up to the moon and simultaneously be surprised when its young people can't afford to live there. Until this contraction is addressed, we're gonna be stuck here, but new construction, ideally of cheap units but literally anything helps, can at least help to stem the bleeding.
dumplesThis is such great politics. It helps america and who ever wants to side with hedge funds? I can't wait to see the strange justifications people who are against this will say
cosmic_slateWell, there’s the practically-justified cynicism that this bill will only get introduced when the Republican Party has at least one house of the legislature or the presidency so the Democrats have someone to blame for why it won’t pass (and totally not because there’s at least a handful who’s investments may be impacted and the head of the legislature doesn’t want to risk embarrassment or whatever by the bill failing) 😅
- with a 0.00% chance that the Republican Party would ever get close to a bill that’d benefit the common people
I was just talking with my very republican neighbor friend about the housing crisis and he agreed that we need regulation to stop the investors from buying up homes.
I have a feeling he is going to change his tune when he hears the right wing pundits warp this into being “woke” or “librel” or whatever
groans
It is amazing how quick opinion turns around when it’s “woke”. CRT is the most frustrating example.
“Hey we could audit the effects caused by laws the government made and remove the ones that intentionally and unfairly inhibit the rights of people”
“Yeah! The state impedes freedom! LETS GO”
“…oh yeah, so this mechanism is called “Critical Race Theory because a lot of laws and standards that unfairly target people are grounded in (sometimes even unintentional) racism”
“fuck that woke trash”
Please please please
I don’t feel much optimism that there is enough political will to pass something like this.
We are slowly sliding into a dystopian corporate hellhole and there doesn’t seem to be any meaningful way to avert it.
Now ban non hotel licensed entities from renting living spaces for less than a month
Fuck that Air BnB shit
Air bnb, flippers, Zillow, and 0% fed funds rate inflated the housing market destroying young peoples’ dream of home ownership.
Semi-Hemi-DemigodThis is one of those bills that gets proposed just for the attack ads.
“Republican Senator Dickweed WANTS hedge funds to own your home.”
Dirty but effective pool, I’m glad Dems aren’t still “going high.”
jballsIs there some additional piece to this bill that would make it impossible for Republicans to support? Other than it being amazingly beneficial to the general public?
Republican ideology is that you increase the housing supply by attracting investors into the home development industry.
So they would say blocking investors makes the problem worse.
Republicans don’t support anything proposed by democrats. On purpose.