On Tuesday, Senator Jeff Merkley (D-Oregon) and Representative Adam Smith (D-WA-09) jointly introduced the "End Hedge Fund Control of American Homes Act" in both the Senate and the House of Representatives. This legislative initiative aims to extricate institutional investors from the housing market.
The proposed bill not only endeavors to prohibit institutional investors from maintaining substantial portfolios of single-family homes but also mandates the divestment of their current holdings. Investors would be required to sell a minimum of 10% of their properties to individual families each year for a period of 10 years. Following this phased approach, a complete prohibition on institutional ownership of single-family homes would be enacted after the 10-year transition period.