Senators Introduce American Homeownership Act to Address Housing Affordability Crisis

State of Delaware - A group of Democratic senators has introduced legislation aimed at making homeownership more accessible to American families. The American Homeownership Act, led by Senators Chris Coons (D-Del.), Elizabeth Warren (D-Mass.), and Jeff Merkley (D-Ore.), seeks to eliminate tax benefits for institutional investors and redirect those funds toward affordable housing initiatives.

The bill targets Wall Street landlords and corporate investors who have been purchasing large numbers of residential properties. According to the senators, these purchases make it harder for individual families to buy homes or afford rent. The legislation proposes ending tax breaks for these institutional investors and using the savings to increase the supply of affordable housing.

Senator Coons stated that institutional investors buying large numbers of homes create barriers for residents in Delaware who want to purchase property and establish roots in their communities. He emphasized that ending tax breaks for Wall Street investors would make homeownership more affordable for working Americans.

The bill has garnered support from 19 Democratic senators in total. Co-sponsors include Senators Amy Klobuchar (D-Minn.), Tina Smith (D-Minn.), Richard Blumenthal (D-Conn.), Cory Booker (D-N.J.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), Martin Heinrich (D-N.M.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Andy Kim (D-N.J.), Edward J. Markey (D-Mass.), Chris Murphy (D-Conn.), Brian Schatz (D-Hawaii), Bernie Sanders (I-Vt.), Adam Schiff (D-Calif.), Chris Van Hollen (D-Md.), and Peter Welch (D-Vt.).

Multiple organizations have endorsed the legislation. These include the American Economic Liberties Project, the American Federation of Teachers, Americans for Financial Reform, the Communications Workers of America, Consumer Action, Grounded Solutions Network, the National Community Reinvestment Coalition, the National Housing Law Project, the National Low Income Housing Coalition, and the Private Equity Stakeholder Project.

Shamus Roller, Executive Director of the National Housing Law Project, described the bill as a first-of-its-kind effort to address corporate ownership of housing. He stated that Wall Street investors have purchased neighborhoods of single-family homes, apartment buildings, and manufactured housing communities, extracting profit by raising rents, adding hidden fees, and neglecting repairs.

Chris Noble, Policy Director at the Private Equity Stakeholder Project, noted that Wall Street landlords have benefited from tax breaks while raising rents and imposing additional fees on tenants. He characterized the legislation as an essential step toward preventing private equity firms from profiting from the housing affordability crisis.

Renee Willis, President and CEO of the National Low Income Housing Coalition, praised the bill for limiting the role of speculative investment in housing. She stated that the legislation represents an important step toward ensuring housing serves people rather than speculative profit.

The bill also includes provisions to strengthen antitrust enforcement. These measures are designed to prevent corporate entities from dominating housing markets and outbidding individual buyers.

Jesse Van Tol, President and CEO of the National Community Reinvestment Coalition, stated that the bill redirects funds toward building affordable housing and helping first-time buyers rather than subsidizing Wall Street landlords.

Laurel Kilgour, Research Manager at the American Economic Liberties Project, noted that the legislation eliminates tax breaks for wealthy landlords and provides antitrust enforcers with better tools to prevent market concentration.

Ruth Susswein, Director of Consumer Protection at Consumer Action, stated that the bill addresses the lack of access to affordable homes by taxing corporate investors and converting those revenues into new housing development.

Caroline Nagy, Associate Director of Housing Policy at Americans for Financial Reform, emphasized that the legislation prioritizes homes for families rather than as profit vehicles for billionaire investors.

The full text of the bill is available HERE for public review.