Prevent Black Rock and other corporations from mass purchasing single family homes and renting them back to Americans at astronomical prices. If it cannot be fully prevented, there needs to be a limit on how many single family homes these corporations can purchase.
This type of business hurts American families by removing homes for them to buy and drastically increasing the prices of available homes.
To prevent large corporations like BlackRock from purchasing single-family homes en masse and renting them back to Americans at high prices, a comprehensive strategy combining regulatory measures, market incentives, community-based solutions, and public awareness efforts is necessary. Here is a proposed plan:
1. Regulate Corporate Ownership of Single-Family Homes
Restrict Corporate Purchases: Introduce federal and state legislation to limit the percentage of single-family homes that institutional investors can own within a region or market. This can prevent large entities from monopolizing the housing supply in specific areas, keeping more homes accessible to individuals and families.
Higher Taxes for Institutional Buyers: Impose a substantial tax on corporate acquisitions of single-family homes. The revenue from these taxes could be redirected to affordable housing programs or down payment assistance for first-time homebuyers.
“Buy-to-Rent” Disclosures: Require corporations to disclose their real estate acquisition plans and publicly justify any bulk purchasing intended for rental purposes. This measure would increase transparency and potentially discourage speculative buying by adding layers of accountability.
2. Promote Individual and Family Homeownership Through Incentives
Expand First-Time Homebuyer Assistance Programs: Increase funding for first-time homebuyer assistance at the federal and state levels. Programs such as tax credits, down payment assistance, and reduced interest loans can make homeownership more accessible for individuals and families.
Encourage Homeowner Associations to Limit Rentals: Work with homeowner associations (HOAs) to set caps on the number of rental properties within their neighborhoods. Limiting rentals can make neighborhoods less attractive to corporate buyers looking for profitable rental opportunities.
Priority Purchase Rights for Local Buyers: Establish local buyer preference programs, giving first-time homebuyers, veterans, and essential workers a right of first refusal on homes being sold, especially in high-demand areas. This could prevent bulk purchases by large corporations and create a fairer market.
3. Impose Rent Control Measures and Local Restrictions
Cap Rent Increases: In high-demand rental markets, local governments can implement rent stabilization laws to prevent corporations from dramatically raising rental rates on properties they own. Rent control reduces the profitability of renting properties at inflated rates, potentially deterring corporate ownership.
Zoning Changes to Protect Single-Family Neighborhoods: Adjust zoning regulations to protect residential neighborhoods from high levels of corporate purchasing, either by restricting bulk sales or by creating zoning designations that favor owner-occupied single-family homes.
4. Encourage Local Investment and Community Land Trusts
Support Community Land Trusts (CLTs): Local governments could help establish CLTs, nonprofit entities that buy and hold land for the community’s long-term benefit. CLTs can acquire properties, ensuring they remain affordable and available to individual families rather than corporations.
Facilitate Local Cooperative Purchases: Support community-based cooperatives or investment groups that buy homes and allow local residents to share ownership. By pooling resources, individuals and families can compete with larger entities to keep properties in local hands.
Expand Community Reinvestment Programs: Strengthen partnerships with community banks and credit unions to promote local ownership and reinvestment. These institutions could offer favorable mortgage terms for local buyers, giving them a better chance to compete against corporate investors.
5. Implement Federal and State-Level Oversight and Regulation
Federal Oversight on Institutional Home Purchases: Task federal housing agencies with monitoring corporate acquisitions in the housing market. These agencies could identify and intervene in areas where corporate purchases are affecting home affordability and availability.
Limit Mortgage Lending to Corporate Buyers: The Federal Reserve and other financial regulators could limit access to certain mortgage instruments for corporate buyers, making it more costly and less profitable for these buyers to finance mass home purchases.
Corporate Transparency and Reporting Requirements: Require corporations to report property holdings, acquisition activities, and rental rates publicly, especially if their activities affect local housing markets. This oversight would provide data needed to assess their impact on housing prices and rents.
6. Address Corporate Tax Incentives and Close Loopholes
Eliminate Tax Benefits for Corporate Rentals: Close tax loopholes that incentivize corporate investment in residential real estate. Corporations often benefit from favorable tax treatments on rental income and property depreciation; removing these incentives could reduce corporate interest in single-family homes.
Higher Capital Gains Taxes on Short-Term Sales by Corporations: Impose a higher capital gains tax on corporations that purchase and quickly resell homes, discouraging speculative buying and flipping that drives up prices.
Restrict “1031 Exchange” for Residential Real Estate: Modify or limit 1031 like-kind exchanges (which defer capital gains taxes on investment properties) for residential real estate. This would make it less financially attractive for corporations to continuously reinvest in housing markets without paying capital gains taxes.
7. Educate and Mobilize the Public for Awareness and Advocacy
Public Awareness Campaigns: Educate the public on the effects of corporate ownership on housing prices through public service announcements, social media, and community meetings. Awareness can build support for proposed legislation and increase demand for policy changes.
Community Advocacy and Organizing: Partner with housing advocates, tenant rights groups, and local community organizations to organize at the grassroots level. Advocacy efforts can pressure lawmakers to implement protective measures for single-family home buyers and prioritize local residents over corporations.
8. Establish Government or Community-Based “Right of First Refusal” Programs
First-Look Programs for Local Governments and Community Organizations: Give local governments and community land trusts the first opportunity to purchase homes before they are sold to corporate buyers. Governmental bodies could either keep these homes for affordable housing programs or sell them to local buyers at fair prices.
Use Government Funding to Buy and Rent Affordable Housing: Municipalities could create or expand programs to buy back properties from corporate owners and convert them into affordable housing. State and local governments could use federal grants or housing funds to support these efforts.
9. Encourage Development of Affordable Housing Units
Incentivize the Development of Multi-Family Housing for Corporations: Encourage corporations to invest in building new multi-family housing rather than purchasing existing single-family homes. By incentivizing new construction, housing supply can grow without taking homes out of the ownership market.
Fund Affordable Housing Projects: Redirect funding and tax breaks to support the construction of affordable housing by nonprofit developers or housing authorities, increasing the supply of affordable rentals without allowing corporate consolidation of single-family properties.
10. Monitor and Report on Market Trends and Corporate Ownership
Create a National Database of Corporate-Owned Properties: Implement a national database to track properties owned by large investors, helping lawmakers and communities understand the scope and impact of corporate ownership on local housing markets.
Regular Market Impact Reports: Require periodic government reports on corporate real estate investments’ effects on housing prices, rent increases, and ownership rates. These reports can inform future legislation and help communities advocate for policies to protect affordable homeownership.
Summary
This plan aims to curb corporate domination of the housing market and promote fair access to homeownership for individuals and families. By implementing a combination of regulatory reforms, tax adjustments, community-driven alternatives, and public advocacy, this approach can reduce the negative impacts of corporate home buying and help preserve affordable housing for American families.
Restoring homeownership from corporations to individuals and families requires a combination of legal, financial, and community-based strategies. This approach should aim at enabling current homeowners who are being impacted by corporate landlords to regain ownership and make homeownership accessible for more people in the future. Here is a detailed plan to help restore homeownership and reclaim single-family homes from corporate owners:
1. Create a Federal or State-Level “Right of First Refusal” Program
Allow Local Buyers a First Opportunity to Purchase: Establish a program where local buyers or community organizations can have the “right of first refusal” when corporate landlords decide to sell properties. This would give individuals, local buyers, and nonprofit housing organizations a chance to purchase homes before they are sold to corporate investors.
Fund Local and Community-Based Organizations: Governments can allocate funding to community land trusts, nonprofits, and municipalities to purchase homes from corporations and offer them at affordable rates to local buyers. This creates a path for families to reclaim homes and prevents further corporate consolidation.
2. Support Buy-Back Programs for Existing Homeowners
Homeownership Assistance for Tenants: Provide programs that allow current renters (who are often renters in corporate-owned homes) to buy the property they live in. These programs could include financial assistance, below-market financing, or down payment support to make homeownership accessible for current tenants.
Government-Backed Home Purchase Programs: Local governments could partner with financial institutions to offer loan guarantees or down payment assistance programs for tenants who wish to buy their homes from corporate owners. These programs would give renters the tools to transition into homeowners without being displaced.
3. Introduce Legislation to Limit Corporate Ownership of Residential Properties
Corporate Ownership Caps: Pass laws that restrict the percentage of residential properties any one entity or corporation can own in a particular area or region. This can prevent large-scale corporate ownership of housing and give more opportunities for individuals and families to purchase homes.
Tax Disincentives for Bulk Buying: Implement tax policies that disincentivize bulk buying of residential properties. For example, increase property taxes for institutional investors or corporations that own large quantities of single-family homes, making it less attractive to buy up homes for rental purposes.
4. Introduce Legal Protections for Current Homeowners and Renters
Anti-Gentrification Policies: Enact laws that protect long-term renters and homeowners from being displaced by rising rents due to corporate purchasing. Policies could include rent stabilization or controls that limit how much corporations can increase rent on tenants, offering stability for renters and homeowners.
Right to Purchase or Lease at Fair Market Value: Legislate that homeowners facing foreclosure or eviction by corporate buyers have the right to buy back their homes at a fair market value. This would prevent the displacement of individuals by large corporations and restore their ability to own homes.
5. Facilitate Direct Purchase and Financing Programs
Down Payment Assistance for First-Time Buyers: Establish or expand state and federal programs that help first-time homebuyers, especially those impacted by the housing market dominated by corporate entities. Down payment assistance, reduced interest rates, or forgivable loans could help individuals or families purchase homes from corporations at more affordable rates.
Direct Purchase by Municipalities and Nonprofits: Governments or nonprofits could be empowered to directly purchase homes that corporations are selling and then sell or rent them back to local families at affordable prices. These efforts could be supported through low-interest loans, grants, or subsidies.
6. Create Legal Pathways for Home Repurchase
Home Repurchase Agreements: Create a legal framework where homeowners, particularly those at risk of losing their homes to foreclosure or sale to corporate investors, can enter into agreements to buy back their homes at a fixed price over time. This would allow people to regain ownership without being displaced.
Affordable Housing Cooperatives: Encourage the creation of housing cooperatives in which local residents pool resources to collectively buy and manage properties. This approach allows communities to collectively regain ownership of housing that might otherwise be bought up by corporate entities.
7. Increase Funding for Affordable Housing Development
Build New Affordable Housing: Invest in large-scale affordable housing development projects that reduce the competition for existing homes. Government funding for affordable housing can help build new homes that are specifically reserved for low- and middle-income families, ensuring a long-term solution to housing shortages.
Support for Local Housing Initiatives: Create incentives for local governments and organizations to build housing specifically for residents at risk of being priced out by corporate landlords. This could include zoning changes that encourage the development of more affordable housing.
8. Improve Transparency and Regulation on Corporate Real Estate Transactions
Public Disclosure of Property Ownership: Mandate that all corporate-owned residential properties are registered in a publicly accessible database. This would create transparency and allow local governments and organizations to track and intervene in areas where corporate ownership is disproportionately high.
Limit Bulk Buying with New Regulations: Introduce new regulations that require corporate buyers to go through a public approval process for purchasing more than a set number of residential properties in one area. This will allow local governments to assess the impact of bulk purchases on the housing market and limit corporate domination.
9. Incentivize Corporate Divestment
Tax Breaks for Corporate Sales to Homeowners: Offer tax incentives for corporations to sell properties to individuals, families, or nonprofits rather than keeping them as rental units. These incentives can include tax breaks or deferred tax obligations on capital gains.
Buyback and Resale Programs: Governments could create programs that encourage or mandate corporations to sell homes back to local buyers or governments. These programs could include financial incentives, tax credits, or the promise of more favorable future regulations.
10. Public Awareness and Advocacy Campaigns
Educate Communities About Their Rights: Launch public campaigns to educate homeowners, renters, and communities about their rights to homeownership and available resources to protect against corporate displacement. This could include information on home purchase programs, anti-eviction measures, and the process of purchasing homes from corporate landlords.
Encourage Collective Action: Promote community-based organizing efforts where local residents can band together to purchase homes or take legal action to stop large-scale corporate purchases. These efforts could include organizing home-buying cooperatives, tenant associations, or legal aid groups focused on housing rights.
11. Incentivize Corporations to Sell Homes to Local Buyers
Create a National Homebuyer Fund: Establish a government-backed fund that directly supports the purchase of homes from corporations by local families. This could be a dedicated fund that provides low-interest loans, grants, or subsidies to help homeowners buy back properties from corporations.
Subsidized Resale Programs: Create a system where homes bought by corporations at inflated prices could be resold at a lower price to eligible families or first-time buyers, with subsidies from the government or community-based organizations.
Conclusion
Restoring homeownership from corporate investors requires a multi-faceted approach, including regulatory changes, financial incentives for individuals and communities, and legal protections for homeowners. By implementing policies that limit corporate ownership, provide opportunities for current renters to become homeowners, and ensure fair housing practices, it is possible to reestablish individual and family ownership in a housing market that has increasingly become dominated by large corporations.
This somehow needs to be framed in a way that included foreign nations. Not sure how one could frame it where foreign govts cant own property/land in US and perhaps foreign nationals, non-duel citizens(?)
I am not sure how that can be done, but if the mortgage rates come down and people are incentivized again to buy home, they will start losing interest in buying single family homes.
Preventing this would help us first-time home buyers. I currently live in an apartment and hope to buy a home soon, but the costs of homes are outrageous and almost impossible for my fiance and me. These companies must be stopped because the American Dream is no longer achievable with the prices of homes and everything else increasing.
This is an excellent idea! I came here to submit this.
I would add that there needs to be a strategic sell off/divestment of the homes that have already been bought. Let’s increase the supply right away. It could be staggered, so that it’s not an all-at-once market event. Or maybe people renting those houses could get onto some rent-to-own program. But let’s make the American Dream work for families, not just corporations!
Yes. The corporations should not be able to buy up housing; especially deep state BlackRock. Housing should not be an asset/investment but a resource to the people. Create the housing problem and cost of housing problem then attempt to sale from your corporate inventory. Not acceptable.
To specifically protect single-family homes from mass acquisition by foreign corporations or entities, targeted policies can be established to limit foreign control over residential properties, especially those designated for single-family occupancy. These policies can help prioritize homeownership opportunities for American families and ensure that local housing markets remain stable and affordable. Here’s a plan focused on preventing foreign entities from dominating the single-family housing market in the U.S.:
1. Limitations on Foreign Ownership of Single-Family Homes
Cap Foreign Ownership by Region: Implement regional caps on the percentage of single-family homes that foreign entities or nationals can own within a given community, city, or state. Once a specified cap is reached, additional purchases by foreign buyers could be restricted.
Restrict Purchase Rights for Foreign Corporations: Restrict foreign-owned corporations from purchasing single-family homes altogether, particularly in areas with housing shortages or affordability issues. Restrictions could be more stringent in residential neighborhoods, where the impact of foreign ownership is felt most acutely.
Country-Specific Restrictions: Identify countries or foreign state-owned enterprises that pose economic or national security concerns and limit or ban acquisitions by entities from those countries.
2. Mandatory Residency Requirements for Property Buyers
Owner-Occupancy Mandates: Require that single-family homes purchased by foreign buyers be occupied by the owner or a direct family member, preventing purely speculative or rental-driven acquisitions. This mandate ensures that foreign purchases contribute to the local community rather than displacing residents.
Minimum Stay Requirement: Require foreign buyers to retain ownership for a minimum period (e.g., 5-10 years) before reselling. This discourages speculative investments and ensures that purchases are made with long-term intent.
3. Taxation and Financial Disincentives for Foreign Buyers
Foreign Buyer Purchase Tax: Implement an additional purchase tax specifically for foreign entities acquiring residential properties. Similar to practices in Canada and New Zealand, this tax would disincentivize non-residential foreign purchases, thereby leveling the playing field for local buyers.
Vacancy Tax for Non-Occupied Homes: Impose vacancy taxes on properties left unoccupied for extended periods. This discourages foreign investors from buying single-family homes solely for asset storage or speculative gains without actual residency.
Higher Property Taxes for Foreign-Owned Properties: Establish a differentiated property tax rate for foreign-owned residential properties, particularly those that are not primary residences. The revenue generated could fund affordable housing initiatives or down payment assistance programs for local families.
4. Enhanced Transparency and Reporting Requirements
Disclosure of Beneficial Ownership: Require foreign buyers to disclose the ultimate beneficial owners of property-holding corporations, preventing the use of shell companies to circumvent regulations. This transparency allows government agencies to track and manage foreign ownership accurately.
Central Registry of Foreign-Owned Properties: Develop a national registry for tracking all residential properties owned by foreign entities, including detailed ownership information. This registry would aid policymakers in monitoring the scale and impact of foreign ownership on the housing market.
Regular Public Reports on Foreign Ownership Trends: Require federal agencies to publish annual reports detailing trends in foreign ownership of residential properties. This information would be used to assess policy effectiveness and respond to emerging market trends.
5. Regulate Property Purchases through National Security Reviews
CFIUS Review Expansion: Expand the Committee on Foreign Investment in the United States (CFIUS) mandate to include residential real estate transactions in strategic locations or near sensitive sites, such as military bases or government facilities. Foreign buyers near these areas would undergo rigorous scrutiny to prevent potential security risks.
Strategic and Sensitive Area Protection: Designate certain areas as sensitive or strategically important, barring foreign acquisitions in these regions. This prevents the concentration of foreign-owned properties in critical locations, such as near major infrastructure, research facilities, and urban centers.
6. Implement Zoning Restrictions for Foreign Corporate Ownership
Zoning Codes for Residential Ownership: Encourage local governments to adopt zoning codes that limit or prohibit foreign corporate ownership in designated single-family residential zones. This protects family-oriented neighborhoods from turning into rental or speculative markets dominated by foreign interests.
Residential Use-Only Zoning for Single-Family Homes: Restrict certain areas to owner-occupied residences only, prohibiting foreign and corporate buyers from using homes as short-term rentals or purely investment properties. This zoning ensures that family neighborhoods remain focused on local residents and long-term occupants.
7. Incentivize Local and First-Time Homebuyers
First-Time Buyer Preference Programs: Provide first-time buyers or local residents with priority access to single-family homes over foreign buyers through programs that give them the right of first refusal on available properties.
Down Payment Assistance and Grants: Increase funding for down payment assistance and grants for local and first-time buyers to help them compete with cash offers often made by foreign investors. This can help more Americans secure homeownership in competitive markets.
Subsidized Mortgage Rates for Local Buyers: Offer lower interest rates or reduced mortgage insurance premiums to local residents purchasing single-family homes, giving them an advantage over non-local and foreign investors who rely on direct cash purchases.
8. Restrict Financing Options for Foreign Buyers
Limit Mortgage Availability to Foreign Buyers: Limit or prohibit mortgage lending from U.S. banks to foreign nationals or foreign-owned corporations seeking to purchase single-family homes, requiring foreign buyers to pay in full. This restriction would reduce foreign speculative investment and prioritize local buyers who rely on financing.
Encourage Federal and State Banks to Prioritize Local Buyers: Federal or state banks could prioritize offering mortgages to American families, incentivizing loans for residents over foreign buyers and supporting local homeownership.
9. Enhance Collaboration between Federal, State, and Local Governments
Federal-Local Partnerships to Enforce Restrictions: Work with local governments to implement and enforce foreign ownership restrictions based on regional housing needs, especially in high-demand areas. Federal support and funding can enhance local governments’ capabilities to monitor and regulate property ownership.
State-Level Legislation to Complement Federal Laws: Encourage states to adopt complementary laws that limit foreign ownership, especially in high-demand markets where local residents are disproportionately affected. These laws could include higher property taxes, zoning restrictions, or owner-occupancy requirements for foreign-owned properties.
10. Engage Public Awareness and Education Initiatives
Community Education on Ownership Rights: Educate local communities about foreign ownership trends, their impacts on housing affordability, and available local resources to assist first-time buyers. Awareness can increase public support for policies and help individuals take advantage of homeownership assistance programs.
Regular Updates on Policy Changes and Housing Market Trends: Keep the public informed on any new regulations, policy changes, and trends in foreign ownership to maintain transparency and accountability in the real estate market.
Summary of Approach
This policy plan focuses on limiting foreign ownership of single-family homes through legal restrictions, financial disincentives, transparency requirements, and prioritizing local buyers. The approach includes measures that curb speculative foreign investment, protect housing affordability, and prioritize homeownership for American residents. By setting clear limits and providing incentives for local buyers, this approach seeks to foster stable, community-oriented neighborhoods that promote sustainable homeownership and prevent housing from becoming a commodity driven primarily by foreign interest.
Please be involved!
To address the impact large investment firms may have on housing affordability and homeownership opportunities, a balanced plan could focus on implementing regulations to create more equitable access to housing while allowing these firms to contribute to sustainable housing solutions. Here’s a potential framework:
1. Limit Bulk Purchasing of Single-Family Homes
Cap Institutional Ownership in Specific Markets: Set limits on the percentage of single-family homes that any one company can own in a given region or neighborhood, preventing market monopolies and maintaining diverse ownership.
Ban on Bulk Purchases in High-Demand Areas: Prohibit or limit institutional investors from purchasing large numbers of single-family homes in areas with critical housing shortages, ensuring local families have first access.
2. Introduce Higher Taxes for Non-Owner-Occupied Properties
Vacancy and Investment Tax: Impose taxes on properties that are owned by investment firms but left unoccupied or vacant for extended periods, incentivizing firms to keep properties accessible and affordable.
Rental Income Tax Increase: For companies renting large numbers of single-family homes, increase rental income tax or require part of these profits to be reinvested into affordable housing initiatives in the communities they impact.
3. Incentivize Companies to Support Affordable Housing Initiatives
Affordable Housing Investment Credits: Offer tax incentives to institutional investors that fund or develop affordable housing or contribute to homeownership programs for low-income families. This approach encourages responsible investment in housing.
Partnerships for First-Time Buyer Programs: Require large investment firms to contribute to programs that support first-time home buyers, potentially through funding down-payment assistance, financial education, or subsidized loan programs.
4. Strengthen Transparency and Reporting Requirements
Disclosure of All Residential Holdings: Mandate detailed reporting on residential property purchases by institutional investors, including property use, to increase transparency and allow for public insight into housing impacts.
Quarterly Public Reports: Require large firms to submit quarterly public reports on their residential property investments, detailing occupancy rates, rental rates, and community contributions. This transparency supports informed policy decisions and community oversight.
5. Enhance Zoning and Local Control Over Institutional Investments
Zoning Restrictions for Bulk Rentals: Implement zoning laws that limit the concentration of rental properties owned by institutional investors in certain residential zones, preserving community character and stability.
Local Government Approval: Require local government approval for bulk property purchases by large firms, allowing municipalities to control housing dynamics based on specific community needs.
6. Provide Affordable Homeownership Programs for Local Buyers
First-Right-to-Buy Program: Grant local residents or nonprofits the first opportunity to purchase homes before large investors can bid. This can increase homeownership rates by giving local buyers a competitive edge.
Down Payment Assistance and Lower-Interest Loans: Implement programs that offer down payment assistance or subsidized loans for first-time buyers, making homeownership more accessible for families rather than corporations.
7. Encourage Community-Focused Investing by Large Firms
Community Reinvestment Requirements: Require a percentage of profits from rental income in a specific community to be reinvested into local housing assistance programs, infrastructure improvements, or other local needs.
Fund Public Housing or Community Land Trusts: Mandate contributions to community land trusts or public housing initiatives to offset the affordability impact that large firms’ presence can have on local housing markets.
8. Establish Penalties for Price Inflation Practices
Penalties for Predatory Pricing: Impose penalties on firms found to be artificially inflating rent or purchase prices to manipulate market dynamics, particularly in low- and middle-income neighborhoods.
Regular Audits for Compliance: Conduct regular audits of institutional landlords to ensure they are adhering to fair pricing practices and community reinvestment obligations.
This policy approach could help create a fairer, more accessible housing market for individuals and families by balancing regulation, incentives, and transparency for large investment firms.
When I lived in Boston it was 1st months rent, last months rent, security deposit and brokers fee (equal to 1 months rent). So a room that is rented for $1000 (room NOT an apartment) would require approx 4k before moving in.
I bring this up to say, folks “get around” the deposit by calling it all kinds of stuff. There wlukd need to be language that says a more basic “…renter will pay a move in fee in total no more than 1.5x rate including deposits, fees and any other payments”
Maybe to start, require the names of the sellers of new houses be public for buyers to see, including any and all corporations and nesting doll corporations, emphasizing the final layer.
