Atlanta — Anyone who lives in Atlanta knows that Wall Street mega-investors are buying homes in the metropolitan area.
It’s happened here more than anywhere else in the country over the last few years.
Now a new bill proposed in Washington would block most of these sales.
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Channel 2 Consumer Researcher Justin Gray Located in the Pittsburgh neighborhood, investors often swoop in with all-cash offers with no surprises, making it hard for families to compete with them.
Over the last few years, one-third of home sales in the Atlanta metropolitan area have been to investors.
Senator Jeff Marquery said the bill won’t pass Congress in the remaining weeks of the year, but he plans to reintroduce the bill in January.
Atlanta City Councilman Matt Westmoreland said no other city faced an investor-driven housing crisis.
“If you look at the last few years, literally no other city has fallen victim to this kind of activity more than Atlanta,” said Westmoreland.
Investors not only push up home prices, Channel 2 research Back in 2017, these big investors were often shown not to be good neighbors or landlords.
“We need Congressional action to get them to come here and fix something,” said one tenant.
According to the latest figures from Redfin, investors accounted for 17% of Atlanta home purchases in the third quarter of this year, totaling more than $2.2 billion, but investor purchases were 42% lower than last year. It is .
Redfin’s Taylor Marr said, “It’s a big drop, but as a share we’re still buying one in four homes,” said Taylor Marr of Redfin. I have.”
Markley’s bill would limit these companies to buying only 100 single-family homes.
“These hedge funds are driving prices up,” Markley said. “They are taking so many homes off the market.”
Free market advocates counter that investors are following the housing market, not leading it.
“Private equity firms and other large investors driven by margins are not responsible for rising prices in the U.S. housing market,” one lawmaker told the hearing.
Mayor Westmoreland said this is one aspect of fighting the housing affordability crisis that city hall cannot fight without Washington’s help.
“We can’t deal with giant financial companies buying up all the housing inventory,” Westmoreland said.
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