On October 23, Representatives Ro Khanna (CA-17), Katie Porter (CA-47), and Mark Takano (CA-39) reintroduced the Stop Wall Street Landlords Act, targeting large institutional investors using taxpayer funds to acquire single-family homes. This bill aims to stop the rapid rise in housing costs and limit the influence of corporate landlords in the housing market.
Following the 2008 housing market crash, investor interest in the real estate market surged, driving housing and rental prices to unprecedented levels. According to Khanna’s office, these investors accounted for 18% of home purchases this past quarter, with a notable 26% in more affordable segments. States like California, Nevada, and Florida are especially impacted, where corporate ownership has made affordable rental housing less accessible.
“Housing should serve families, not corporate entities buying affordable homes and pushing homeownership out of reach,” stated Khanna. He expressed pride in spearheading this initiative with Porter and Takano to keep taxpayer funds from further fueling the housing affordability crisis.
Porter expressed that, as a mother, the thought of a future where families like hers cannot achieve homeownership is deeply troubling. “We owe it to Americans to make housing affordable again,” she added. Takano echoed these sentiments, pointing to the increased cost of housing due to the monopolization of single-family homes by Wall Street.
The Stop Wall Street Landlords Act would:
Eliminate tax deductions on mortgage interest, insurance, and depreciation for large corporate home investors.
Instruct federal agencies like Fannie Mae, Freddie Mac, and the FHFA to prevent large investors from purchasing single-family mortgages or any related interest.
Enforce a 100% transfer tax on single-family residences not sold within 18 months, using the revenue to support the Housing Trust Fund.
This bill includes exceptions for smaller landlords, affordable housing providers, nonprofits, and developers dedicated to creating affordable housing. Numerous lawmakers and advocacy groups, including the National Coalition for the Homeless and California Democratic Renters Council, have endorsed the bill.
