There are few issues more important in the United States than housing. It’s a crucial part of the American Dream, representing a path to security, community, and mobility. But in the attempt to make this complex challenge easier, there’s a dangerous policy idea gaining traction in Washington: restricting large institutional investors from purchasing single-family homes and offering them as rentals. The proposal is cloaked in language about expanding homeownership and curbing rising housing costs.
While it may look good in a press release, this policy would be a disaster for vulnerable American families. Restricting institutional investment in high-quality single-family rentals (SFR) would limit housing options for the communities fueling America’s population growth: Black, Hispanic, and economically challenged families in their 20s and 30s. Although framed as taking on private equity, this proposal would instead represent an attack on renters, disproportionately harming underserved communities.
