Large corporations, like Black rock, Vanguard and StateStreet, are driving up home prices, depleting residential inventory and keeping the average citizen from being able to purchase a home. Corporations should not be allowed to own single family homes, monopolizing the market and driving up rent. Fees to corporations are not the answer, as the fees will only roll down him. Force the large corporations to sell off inventory and forbid them from purchasing single family residences.
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I think the best solution is to create a clear cut policy. “if you own or manage a firm that is valued at more than X dollars in your portfolio, you cannot purchase a single family home”. Part of capitalism is to allow competition which is to the benefit of the consumer. But when consumers lose the ability to climb the ladder because the first rung is so high off the ground, then there needs to be protections in place.
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As ideal as this would be, this would give the government a strong power to intervene in home purchases. Imminent domain exists already sadly but I feel like companies would easily get around this by becoming property managers for subsidiaries
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this is tough because corporations (or other entities) or ETF or Mutual Funds or REITS are nothing more than individuals pooling their resources together so that together they can accomplish more than they each could on their own. are we proposing preventing individuals from pooling their resources together? are we all really just supposed to make it on our own?
Well, you have to break this down further.
Groups of people start Real Estate Investment Trusts (REIT) and the intent is to build wealth through rental income. It’s a great pathway for non-traditional workers.
Individuals also owner rental properties.
So, where you can make improvements are to propose that regions of cities or towns be designated for Owner Occupied properties only.
Or that companies cannot buy foreclosure homes or tax sale properties. That those be offered to Owner Occupied first for the first 90-days that the property becomes available.
You can’t stop a corporation from constructing its own community.
How about ending property taxes on an individual or family’s primary residence? That way, real homeowners would have a general advantage over rentseekers.
Not saying this would solve the issue completely, but it’s simple and clean.
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This is part of the intent of my proposal. Good thinking…
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