the metro city center and thus further from job opportunities or simply rent a home from the corporate investor.
WHICH NEIGHBORHOODS ARE TARGETS? Corporate investors particularly target the cheaper homes in less affluent suburban neighborhoods. Typically, their target price range has been anything under $300,000. The demographic this knocks out of contention for home ownership includes young college-educated under 30-year-olds looking for their first home as well as less affluent adults who are fed up with renting and have finally found a way to put enough away for a decent down payment. Unfortunately, after a wave of corporate investors, there is likely nothing left on the market within their price range. This forces them into a situation where they continue to rent. Because of the higher market value of homes, corporate landlords can justify charging a higher rent. LEGISLATIVE REMEDIES With few options and hopelessness about the manipulated housing market, former home seekers turned tenants now must plead their expensive housing situation to state and local lawmakers. Rent control measures have historically only been applicable to multifamily housing such as apartments and condos. The conversation has shifted in the last 10 years, however, with many tenants experiencing absurd rent increases on an annual and even month-to-month basis levied by corporate landlords. State lawmakers are now recogniz- ing the issue and establishing laws to make corporate landlords’ siege
on residential America less intrusive. Rent control measures have been extended to protect single-family home renters in the states of Califor- nia and Oregon. The outlook for other states to follow suit is optimistic. In late October 2022, California Democrats introduced the Stop Wall Street Landlords Act to the House of Representatives. This bill would deny certain tax benefits to large investors whose assets exceed $100 million in a taxable year for investment in single-family housing, according to Congress.gov. Many laws and policy shifts emanate from California across the nation, so corporate investors will have to hold their breath in the wake of these policy changes to see how their revenues are affected. For the tenants of corporate landlords, it feels like this is a win but there is certainly an uphill battle on the horizon. With rent control policies and specific legislation in the framework for single-family home renters, we are at least beginning to combat this onslaught
by corporations in the real estate investment market. Home ownership remains the greatest source of wealth and security for families. It is written into our aspirations from a young age as part of the coveted American dream. It is a significant source of emotional stability as a place to raise children and develop roots within a community. It is hard to feel connected to a community when you are struggling to pay rent each month and fighting for your right to an equitable future. If the tide does not turn quickly enough, we could be in store for a nation of renters, corporate investors raking in cash by the billions, and a reset of the residential housing market. •
Taylor Miller is a project specialist and marketing coordinator for Owner Builder Advisors, where he helps developers and owners navigate the construction
process. He has been actively involved in the construction and inspection industries since 2016. He also manages marketing campaigns, social media, and document generation/compilation for both formal and informal application processes.
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