While the housing market seems to be cooling off,have been having a field day throughout the pandemic. They’ve been buying up single-family homes as soon as they’re listed, then renting them out. Some say this has driven prices up and made it harder to become a homeowner.
State Rep. Gina Hinojosa in Austin said her constituents have felt the effects of investor-owned housing firsthand. “This is a problem we are experiencing in Austin, just like most other fast-growing housing markets across the country,” Hinojosa said. “Financial institutions are the single largest buyer of middle-income housing in Travis County.”
Hinojosa’s HB 1057 would keep institutional investors from buying homes until 30 days after they’ve been listed for sale. This could allow for a more competitive environment in the housing market between investors and future homeowners. The bill would take effect in September, while the registry bill would take effect in January 2024. “This is a national problem, but certainly Austin has been hit hard,” Hinojosa said.
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