Warnock Secures Bipartisan Legislation to Ban Private Equity from Mass Purchasing Single-Family Homes

The Warnock private equity ban was included in the bipartisan ROAD to Housing ActThelegislationwould ban institutional investors from mass purchasing single-family homes, denying first-time homebuyers access to home ownershipSenator Reverend Warnock: “In Atlanta, private equity’s greed is squeezing first-time homebuyers out of the market and pushing the American Dream further out of reach. It’s time Congress did something about it”
Washington, D.C.– Today, U.S. Senator Reverend Raphael Warnock (D-GA)  secured a bipartisan provision to ban institutional investors from mass purchasing single-family homes in theROAD to Housing Act, a comprehensive housing package. As a member of the Senate Banking Committee, which oversees federal housing policy, Senator Warnock hasworkedfor years to stop the spread of private equity institutional investors in the single-family and starter home housing markets. Georgia’s housing market is suffocated by private equity, with 30% of Atlanta’s single-family rental market owned by institutional investors. The Warnock provision is expected to pass the Senate as part of the bipartisanROAD to Housing Act.“In Atlanta, private equity’s greed is squeezing first-time homebuyers out of the market and pushing the American Dream further out of reach,”said Senator Reverend Warnock.“It’s time Congress did something about it. That’s why I’m proud to have helped lead the bipartisan effort to ban private equity from mass-purchasing homes. This legislation is bipartisan and common sense: let’s get it done.”The provision would ban institutional investors from purchasing single-family homes if they own more than 350 such homes. For context, 25% of Atlanta’s single-family rental market is owned by institutional investors who own more than 1,000 homes. This legislation would impose a fine of either $1 million or three-times the purchase price on institutional investors who purchase single-family homes. Any fines collected under this legislation will be used for new housing construction and financial assistance for first-time homebuyers, building on the Senator’sleadershipto support first-time homebuyers.
Since coming to the Senate, Senator Warnock has worked to increase affordable housing and illuminate a path to homeownership. As one of twelve brothers and sisters growing up in public housing in Savannah, Senator Warnock deeply understands the importance of having a place to call home and homeownership. Last spring, the Senatorintroduceda transformative housing package that would address rising rental costs, downpayment fees, and the overall lack of available housing units. The Senator also partnered with the top Democrat on the Senate committee that oversees federal housing policy tointroducelegislation that would build nearly three million new housing units.Bill text for the amendment can be foundHERE.
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