Democratic lawmakers introduced a bill Tuesday aimed at curtailing investor activity in the housing market that can drive up home prices.
The Stop Predatory Investing Act, introduced by Sens.
Sherrod Brown (D-Ohio), Ron Wyden (D-Ore.) and others, would restrict investors who purchase 50 or more single-family rentals from deducting interest or depreciation on those properties from their taxes.
Investors’ share of the housing market dropped by a record amount in the first quarter of the year, accounting for just 18 percent of purchases, data from real estate brokerage Redfin shows.
Despite their declining share, investor presence in the market can still create challenges for buyers, especially for those looking for starter homes, Redfin senior economist Sheharyar Bokhari said in May.
“Investors have gravitated toward more affordable properties due to still-high housing costs and rising mortgage rates, which has left first-time homebuyers with fewer starter homes to choose from,” Bokhari added.
Redfin noted the data could also include purchases made through a family trust for personal use. »