Note: Data are 3-month trailing averages. Source: JCHS tabulations of CoreLogic data

Note: Data are 3-month trailing averages. Source: JCHS tabulations of CoreLogic data

Congressman introduces bill to discourage large investors from buying homes

Some point to large investors and private equity firms for the high cost of homes.

Recently, Congressman Adam Smith (D-WA) introduced a bill aimed at slowing “the consolidation of single-family home ownership among the investor class.”

The Saving Homes from Acquisition by Private Equity Act, or the SHAPE Act, would institute a federal tax worth 100 percent of the value of the single-family home being bought, when that home is purchased by a “large investor.” The language of the bill defines a large investor as any person whose assets have an aggregate value of over $20 million.

It would not apply to homes being purchased to be the “principal residence,” or to certain tax-exempt organizations.

The revenue generated from the tax would be transferred to the Housing Trust Fund to be used as grants given for affordable housing projects in communities.

“Folks in our communities should not have to compete with large institutional investors and private equity firms when they go to buy a home, and renters should not be subjected to the harmful practices by these investor class landlords that want to wring the value out of each house,” said Smith. “My bill will deter this problematic trend that is damaging the housing market, consumers, and our communities.”

According to a housing market study from the Harvard Joint Center for Housing Studies, the percentage of single-family homes bought by investors reached a record in the first quarter of 2022. The investor share of homes sold averaged 28 percent per month in the first quarter of 2022, up from 19 percent a year earlier and well above the 16 percent share averaged in 2017 through 2019.

“By buying up single-family homes, investors have reduced the already limited supply available to potential owner-occupants, particularly first-time and moderate-income buyers,” the authors of the study wrote. “Investor-owned homes are typically converted from owner-occupied units to rentals or upgraded for resale at a higher price point.”

The full bill can be found here.

Talk to us

Please share your story tips by emailing

To share your opinion for publication, submit a letter through our website Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in News

Washington State Capitol Building in Olympia. File photo
Schools, housing, salaries score big in Senate Dems $70B budget

The proposed spending plan also spends money to fight climate change, help abortion providers and study police pursuits

SeaTac girl pleads guilty to hit-and-run murder of Maple Valley man

Judge sentences the 17-year-old to remain in custody until she turns 21; maximum allowed by law

File photo.
Audit finds accountability issues in King County’s equity and social justices programs

Auditors say the county lacks progress tracking, clearly defined roles and accountability measures.

Northwest Kidney Centers opening Panther Lake location in Kent

Open house set for 2-4 p.m. Thursday, March 30

Courtesy Photo, Metro Creative Graphics
Kent man faces murder charge in 2022 Auburn case of man found shot

The two men apparently were friends; man found inside vehicle

State Capitol Building in Olympia, WA. File photo
New forecast show state revenues won’t be quite as robust as expected

Democratic budget writers say they will be cautious but able to fund their priorities. Senate put out a capital budget Monday.

Elements of the city’s interactive space-themed park being lowered in. (Screenshot from Kent Youtube page)
Aerospace industry among Kent’s top economic boosters

Mayor said the Kent Valley is home to about 250,000 jobs.

Aerial view of Clark Lake and surrounding natural area. (Screenshot from City of Kent Youtube page)
Kent’s parks undergo renovations and reimagination

Mayor Dana Ralph outlines recent and future projects.

Most Read