Affordable housing is elusive in some areas of the state. And U.S. Sen. Sherrod Brown (D-Ohio) said it's a problem made much worse by what he calls "predatory investing” that he wants to stop by cutting tax breaks for companies that are buying up housing.
Brown said two Wall Street corporations own 12,000 properties in Ohio – affordable properties that were purchased, sometimes sight unseen. He said that drives up the cost of real estate in those communities.
"Many families work to save for years to buy a home and they end up getting outbid over and over by outside investors and they simply can't compete with Wall Street predator money," Brown said. "These companies jack up rent, they neglect repairs and they threaten families with eviction."
Brown’s bill would eliminate tax breaks for investment companies that own 50 or more homes.
Brown made his comments while touring a home in the Olde Towne East area of Columbus that had been made affordable by a local land grant.
Land grant organizations generally buy large pieces of land then lease them to homeowners who can build new or renovate existing affordable homes on them. Brown said land grants are one workable solution to the housing affordability crisis that has been hitting many parts of Ohio in recent years.
Brown said big investors have been gobbling up properties within communities, preventing first-time homeowners from getting an opportunity to buy them. And as those investors are able to acquire a lot of properties in an area, they raise the rent significantly for renters who occupy those homes.
“In the second quarter of this year, investors of all sizes bought more, accounting for 14%, 14%, one out of seven. It drives up prices and makes it harder for Ohioans to buy a home, especially young families," Brown said.
Carlie Boos, executive director of the Affordable Housing Alliance of Central Ohio, said the problem in her community is significant because investors are targeting entry-level homes.
"Almost half of the homes that these entities purchase are the kinds of starter homes that Ohio's families need desperately," Boos said.
Brown said he doesn’t have bipartisan support for his bill now, but hopes to get it in the future if he wins in November, fending off a challenge by Republican businessman Bernie Moreno.
Bernie Moreno's campaign was contacted for a comment on this story but at this point, no one has responded.
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