House passes affordable housing bill, sends it to Trump’s desk
The U.S. House voted Tuesday night 358-32 in favor of a sprawling
housing package designed to lower costs for homebuyers and increase
supply. ...
The broad bi-partisan support for the bill tells you it won't do much for very many people anytime soon.
But expect the politicians to brag on it as silly season ramps up.
A key provision of the bill caps institutional investor ownership of single family homes at 350 from here on out.
Investors already owning single family homes, however, at whatever level, are grandfathered in. Blackstone, for example, owns approximately 58k such homes. It is thus prevented from buying number 58,001 under the bill.
That means that the approximately 530k+ homes currently owned by institutions, which is only about 4% of the single family housing rental pie, will not be forcibly sold into the market.
About 87% of the pie is individual investors who own in the neighborhood of 1-5 homes. There will be no change mandated there either, which is where most of the available single family housing stock is.
There are 46.4 million renter-occupied housing units in the
United States in the first quarter. Of those, approximately 11.3 million
are single family homes. That means that the number of owners of those rental homes ranges roughly between 9.8 million and 2 million individual investors, probably living in a rich suburb right near you.
The bill does prevent umbrella companies from owning multiple small entities created by individual investors to beat the 350 cap, with stiff penalties, so that is good.
The problem is this bill entrenches the status quo of the rich preying on both ends of the housing spectrum.
Mobile homes in parks are not considered single family homes under the bill. They are considered multi-unit commercial real estate. Private equity investors are notorious for buying up these parks full of affordable housing and jacking up lot rents on approximately 4.3 million homesites to the moon. Up to 12 million mostly low income Americans live in such parks.
The bill eliminates the mobile chassis rule for new manufactured homes, marginally reducing their cost. But imagine parking one in one of those parks and being unable to move it while the landlord holds a rent gun to your head. There are other provisions in the bill to help these existing park owners, and the mobile home owners who live there to borrow more to pay the greedy bastards.
11.3 million hostages to the rich on the front end, 12 million on the ass end.
The bill had passed in the U.S. Senate 85-5 on Monday.
Since the beginning of the 21st century in the United States, growth of renter-occupied housing continues in the ascendant while growth of owner-occupied housing continues south.
We still live with the deleterious effects of the Great Recession, when more than 6 million residences were completely foreclosed in the United States, and this is the best our elected representatives can do almost two decades on.
Congress is already getting Mamdanied as this goes to Trump for his signature.
