In North Texas, contractors are already experiencing the effects of a proposed federal housing bill that aims to reshape the real estate landscape. The 21st Century Road to Housing Act, currently under debate in Congress, seeks to increase housing supply and access to affordable housing while imposing restrictions on large institutional investors.
Clayton Stidham, owner of Shield Properties, has seen a slowdown in investor purchases, leading to job losses among his crews who renovate homes in the Dallas-Fort Worth and Houston areas. ‘This new legislation has caused delays in house purchases, and I’ve had to let go of 36 to 40 workers,’ Stidham explained.
Impact on Local Economy
The bill proposes to ban investors owning more than 350 single-family homes from acquiring additional properties, aiming to keep more homes available for individual buyers. Cody Phelps of Main Street Renewal, a company owning about 45,000 single-family homes nationwide, argues that institutional investors play a crucial role in providing affordable housing, especially for those unable to qualify for mortgages.
Phelps highlighted that many homes purchased by his company require significant repairs before they are livable. ‘We buy distressed properties and make them suitable for families who can’t afford the upfront costs of renovation,’ he said. He also noted that many residents in their properties can afford mortgage payments but face barriers like credit history or lack of a down payment.
Legislative Developments
The House recently passed a revised version of the bill, removing a requirement for investors to sell homes within seven years but adding oversight measures and a tenant eviction hotline. This version received bipartisan support and backing from major builders and housing advocacy groups. The legislation now awaits Senate consideration.
While some investors have already reduced activity due to rising interest rates and costs, housing experts acknowledge the frustration of potential homeowners feeling locked out of the market. Justin Landon, president of the MetroTex Association of Realtors, noted that while investors help make rental housing available, the concentration of ownership by large companies can limit options for individual buyers.
Original reporting: Dallas TX News (HLL/CB) — read the source article.
