As first-time homeownership rates drop, lawmakers request an investigation into the effects of institutional investors on housing affordability
DURHAM, NC (October 29, 2024) — Today, Congresswomen Valerie Foushee (NC-04) and Deborah Ross (NC-02) sent a letter urging the Federal Housing Finance Agency (FHFA) and Consumer Financial Protection Bureau (CFPB) to examine the impact of institutional investment on the housing sector, and whether investors are taking advantage of federal affordable housing programs at the expense of homeowners and renters. The surge of institutional investments has led to rising housing prices and increased rental costs, significantly impacting working families, first-time home buyers, and renters across North Carolina.
In the Research Triangle area, median home prices surged over 25% from 2020 to 2023. Reports indicate that institutional investors purchased nearly 18% of all homes in Wake County in 2022, outbidding local families and exacerbating the housing crisis.
The lawmakers wrote, “Federal housing policy should prioritize the housing needs of everyday Americans, not speculative profits. We urge you to act swiftly in probing these programs and practices so that Congress and housing agencies can better understand the role of institutional investors in housing affordability and provide solutions.”
Specifically, the lawmakers are requesting that the investigation focuses on:
- Evaluating federal programs that provide incentives to large real estate investors, with suggestions to make these programs serve their intended purpose of helping families.
- How the rise of large investors owning homes is affecting prices and rent, regardless of what federal housing programs are in place.
- Whether practices like raising rents are pushing out middle-and low-income families.
- How the business practices of these investors are harming tenants’ rights, living conditions, and financial well-being.
Full text of the letter is available here.