For a long time, there haven’t been enough homes available for people to buy. This shortage makes it tough for those looking to purchase a home, often leaving them with limited choices and expensive options. But there’s a new bill in Congress that could help out home buyers.

The proposed “End Hedge Fund Control of American Homes Act” is a law introduced in 2023 by Senator Jeff Merkley and Representative Adam Smith. Its goal is to increase the number of homes available for sale and prevent big investors from buying too many properties, making it hard for regular people to find affordable homes.

Big investors like hedge funds use a lot of money to buy up many houses, which reduces the number of homes available for everyone else. This drives up prices and makes it difficult for regular buyers to compete. The bill aims to change this by stopping big investors from buying more single-family homes and making them sell some of the homes they already own over a 10-year period.

Senator Merkley explained, “Homes in our neighborhoods should be for people, not just ways for big corporations to make money. Across the country, these corporations are buying up homes and raising rents and prices. Congress needs to put rules in place to make sure everyone has a fair chance to buy or rent a decent home at a price they can afford.”

The bill has two main parts: first, it stops big investors from buying more homes, and second, it makes them sell at least 10% of the homes they own every year for ten years until they have none left. This could put over half a million homes back on the market, making it easier for people to find a home.

As of December 2023, the law has not been passed yet. Congress still needs to agree on it before the President can make it a law. There’s no exact date for when this might happen, but it could be soon.

Other laws in the works might also help home buyers. The Neighborhood Homes Investment Act plans to spend $16 billion to build and fix around 400,000 homes. The First-Time Home Buyer Tax Credit could give first-time buyers up to $15,000 in tax credits. Lastly, the Downpayment Toward Equity Act might offer first-time home buyers a $25,000 cash grant to help them buy a home.

Mortgage professionals, like The Town Group, are keeping their clients updated on these changes in the mortgage market to help them make informed decisions about buying a home.