HART Act: Senators Push for Transparency to Curb Corporate Influence on Housing Costs

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HART Act: Senators Push for Transparency to Curb Corporate Influence on Housing Costs

We open with a story we’ve been following that has been getting more attention from lawmakers. This past July, U.S. Senators Amy Klobuchar and Sherrod Brown introduced the HART Act (Housing Acquisitions Review and Transparency) to address corporate practices that are driving up housing costs. The HART Act, co-sponsored by Senators Jeff Merkley, Bernie Sanders, and Elizabeth Warren, would require corporations and private equity firms that purchase large amounts of housing to report these transactions to antitrust authorities, aiming to prevent actions that could lead to higher rents and reduced services.

Senator Klobuchar, who chairs the Senate Judiciary Subcommittee on Antitrust, stated, “Housing is becoming increasingly concentrated in the hands of large corporations. As we’ve seen in other cases of unchecked consolidation, consumers often end up paying higher prices for fewer options. The HART Act is a crucial step toward addressing this issue.”

Senator Brown echoed this concern, saying, “In too many communities, big private equity investors are jacking up the rent and neglecting repairs, all while hiding behind opaque holding companies. Our HART Act will bring much-needed transparency and help place a check on private equity’s predatory behavior.”

The HART Act is supported by several organizations, including the American Antitrust Institute and the National Low Income Housing Coalition, who believe the legislation will help curb monopolistic practices in the housing market. As the HART Act gains traction, its potential impact on the housing market continues to draw attention from both supporters and critics.

The HART Act, supported by organizations like the American Antitrust Institute and the National Low Income Housing Coalition, aims to reduce monopolistic practices in the housing market and increase transparency in transactions. As it gains traction, the HART Act is seen as a crucial measure to hold corporations accountable and ensure fair pricing, marking an important step in addressing rising housing costs and emphasizing the need for accountability in real estate.

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Canadian Government Unveils Plan to Convert Federal Properties into 250,000 Affordable Homes

There is some interesting moves from our neighbors to the North. Canadian Prime Minister Justin Trudeau’s government has identified 56 federal properties, equivalent to about 2,000 hockey rinks, as potential sites for hundreds of new affordable homes. This move aims to tackle the housing shortage by addressing the scarcity of available land. The properties will be part of the new Canada Public Land Bank, according to a government news release.

Five properties in Toronto, Montreal, Calgary, Edmonton, and Ottawa are already available for long-term leasing at discounted rates. Builders can submit their plans, and the list of available properties is expected to grow regularly.

Housing Minister Sean Fraser, leading the strategy, said, “We need to build more homes in Canada, and one of the largest costs in building is land.” The government hopes to create up to 250,000 new residential units by unlocking public lands and has set up a $500 million acquisition fund to buy additional land.

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West Virginia Tops U.S. Homeownership Despite Low Income, Highlighting Real Estate Affordability Gap

West Virginia has the highest homeownership rate in the country at 77%, despite having the second-lowest average personal income at $52,585. This stark contrast highlights how real estate affordability varies widely across the U.S. When West Virginia realtor Vera Sansalone showed a 90-acre log cabin property in Mannington for $420,000, her client from Boston was stunned by the low price. Accustomed to Boston’s soaring real estate market, where even studio apartments can sell for more, he suggested she raise the price by $300,000.

In West Virginia, such pricing is typical, with many three- and four-bedroom homes listed for under $200,000. By comparison, states like New York, California, and Massachusetts, which boast average home values of over $1 million in cities like Manhattan and San Francisco, have some of the lowest homeownership rates. The median home price in the U.S. stands at $420,800.

Real estate analyst Mike Simonsen observed, “I would have expected that the wealthier a place is, the more likely its people can afford a home. It turns out the opposite is true.” Big cities, with their strict zoning laws and limited land, often push housing prices beyond the reach of many. In response, cities like New York are rethinking zoning laws and converting office spaces into affordable housing. The number of U.S. apartments converted from offices has quadrupled since 2020, reflecting a growing trend to address the nationwide housing shortage.

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