The Taxpayers Protection Alliance (TPA) has called on Congress to address housing affordability by reducing regulatory barriers rather than introducing additional restrictions. This comes after Senators Tim Scott and Elizabeth Warren, leaders of the Senate Banking, Housing, and Urban Affairs Committee, released the 21st Century ROAD to Housing Act on March 2. The legislative package includes various reforms, new spending initiatives, and a scaled-back ban on large institutional investors purchasing single-family homes.
Ross Marchand, Executive Director of TPA, commented on the bill’s provisions:
“TPA has long warned that a ban on large investors buying single-family homes would reduce much-needed investments into the housing market while failing to bring down home prices. Institutional investors own less than 1 percent of single-family homes, and a ban would do nothing to lower housing costs. While the ban is included in this bill, its reach is fortunately much reduced from the original proposal. Exempting investor-to-investor sales and built-to-rent homes ensures that pro-consumer housing deals will not be held up by bureaucrats. However, TPA continues to oppose any ban or attempt to impose red tape on the housing market.
“The proposal also targets unneeded and outdated regulations holding back housing supply. For example, Sections 207 and 208 target onerous environmental and National Environmental Protection Act (NEPA) reviews that can turn a seven-month build into a seven-year build. This approach is laudable but has limits. States and localities are responsible for most of the housing red tape and need to get their permitting systems under control. Using taxpayer dollars to nudge states to change their ways—as this bill proposes—is no substitute for sustained cooperation between all levels of government. Red tape can and should be eliminated without costing taxpayers a dime.
“This bill is a mixed bag for taxpayers and consumers who are rightly fed up with high housing costs. TPA will continue working with lawmakers to reform housing laws and cut red tape.”
The Taxpayers Protection Alliance Foundation is based in Washington D.C., operating as a non-profit organization focused on advocating for government transparency through public education efforts such as research, investigative reporting, and analysis regarding taxation and government spending at all levels since its founding in 2011.
