Brown, Columbus Leaders Take on Predatory Investors That Drive Up Local Housing Prices

COLUMBUS, OH - Today, U.S. Senator Sherrod Brown (D-OH) was joined by local leaders and community members in Columbus to call for passage of his Stop Predatory Investing Act, which would take away tax breaks for big investors that buy up large numbers of homes, driving up local housing prices. Brown, who serves as Chair of the Senate Banking, Housing, and Urban Affairs Committee, also toured a home being constructed for purchase by a Columbus homebuyer, not an investor. The Stop Predatory Investing Act would prohibit an investor who acquires 50 or more single-family rental homes from deducting interest or depreciation on those properties. Right now, two big Wall Street-backed investors own nearly 12,000 Ohio single-family homes in just three markets - including nearly 3,800 homes in Columbus. And the true extent of the problem is likely much larger, because other large investors, like private equity firms, that own homes throughout Ohio aren't required to report how many homes they own.

"In too many communities in Ohio, big investors funded by Wall Street are buying up homes and driving up prices. So many families who have worked for years saving to buy a house end up getting out-bid over and over by outside investors, and they can't afford to compete," said Brown. "We introduced the Stop Predatory Investing Act to fight back by striking right at the core of what makes this a profitable business venture for deep-pocketed investors: by taking away tax breaks they don't need, we cut deep into their profit."

Brown was joined by Carlie Boos, Executive Director of the Affordable Housing Alliance of Central Ohio, Janene Parham, a realtor with Red 1 Realty and Co-Founder of Renew Homes Ohio, and Curtiss L. Williams, Sr., President and CEO of the Central Ohio Community Improvement Corporation.

"It's not a fair fight when these LLCs are offering to close on a home two hours after it shows up on a listing service, when they're willing to pay cash, when they're willing to buy as-is, no inspection, sight-unseen. Our homebuyers cannot go toe-to-toe with high-tech algorithms backed by an unlimited supply of cash. Thankfully, this is a problem that can be fixed. Most immediately, we can take away the incentives and tax breaks that make it more alluring to invest in a home than live in one. I want to thank Senator Brown, Curtiss Williams, and Janene Parham for their continued leadership in this effort," said Carlie Boos.

"As a realtor with over 25+ years and advocate for affordable housing. I have seen a lot of shifts of the market. This may be one of hardest, especially for buyers purchasing within the 180k -325k price range," said Janene Parham. "Predatory Investment Corporation is having a negative effect on our housing market for buyers and renters in most vulnerable communities. Regulation has to happen now in order to stabilize and make home ownership affordable."

"We want to thank Senator Brown and his team for their support of affordable housing initiatives across Ohio and nationally. We appreciate his work to introduce legislation that would help keep homes accessible to working individuals and families in Franklin County," said Curtiss L. Williams, Sr. "When we take corporations and investors out of the equation, our community is able to focus on creating sustainable pathways to homeownership and affordable rentals."

Private equity and other Wall Street-backed outside investors are a growing problem in Ohio housing markets, driving up local housing prices and pushing homeownership further out of reach for too many working families. In the second quarter of 2024, investors bought more than 14% of homes in Columbus according to Redfin. Large, out-of-state investors use technology and all-cash offers to outcompete individual buyers. And because investors often target the same types of affordable starter homes as first-time homebuyers, they deny families the opportunity to build wealth through homeownership.

Brown has long fought to protect Ohio's homeowners and renters from bad actors in the housing market and has fought to improve access to affordable homeownership. In July, Brown introduced the Housing Acquisitions Review and Transparency (HART) Actto increase competition in the housing market by requiring corporations and private equity firms that buy up large numbers of houses and apartments to report those transactions to antitrust enforcers. Brown has held hearings with Cleveland's Director of Building and HousingSally Martinand the Port of Greater Cincinnati Development Authority President and CEOLaura Brunnerabout the harm that investors have caused Ohio communities, renters, and aspiring homeowners. Brown also held alistening sessionwhere tenants from across the country described the harm they'd experienced renting from institutional investor landlords.

Legislative text of the Stop Predatory Investing Act can be found here, and a summary of the bill can be found here.

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