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Floor Speech

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Mr. REED. Mr. President, today, I am reintroducing the Affordable Housing and Homeownership Protection Act with Senators Smith, Blumenthal, Klobuchar, Baldwin, Whitehouse, Kim, Gallego, Murphy, and Slotkin. Our bill would provide approximately $50 billion over a decade to help build and preserve 2.9 million units of affordable housing and is fully paid for through a new tax that disincentives institutional investors from purchasing large numbers of single-family homes.

Driven by a shortage of as many as 6.8 million homes nationwide, home prices have surged 51 percent and rents 36 percent over the last 6 years, according to the National Association of Realtors and Zillow. During that same period, large investors exacerbated this shortage by purchasing hundreds of thousands of single-family homes across the United States, many of which they hold within portfolios as rentals, preventing more families from reaching home ownership. In the first 9 months of 2025, around 30 percent of single-family homes on the market were bought by investors, not hard-working households who cannot compete with private equity and other large investors that can make all-cash offers, waive contingencies, and provide additional concessions.

Institutional investor activity within the single-family housing market began in the wake of the great recession and accelerated during the COVID-19 pandemic. It has compounded other housing market pressures that are driving up costs, including years of underbuilding and a shift among developers toward building larger, more expensive homes. As a result, average Americans are being crowded out of home ownership. Researchers at Harvard University report that home prices in 2024 were five times the median household income--significantly higher than the price-to-income ratio of three that traditionally signifies an affordably priced housing market.

Surging home prices and rents particularly strain moderate- and low- income Americans. Homelessness has risen in line with housing prices and is up 36 percent since 2019. Unfortunately, existing Federal investments in low-income housing are insufficient to solve this affordability crisis. Indeed, in 2023, those same researchers at Harvard University found that the three largest Federal housing programs serve nearly 300,000 fewer households today than they did 20 years ago, while only approximately 25 percent of eligible households can get housing aid.

The Affordable Housing and Homeownership Protection Act would address the outsize role institutional investors have in the housing market while also addressing the need for more housing units. It would raise $51 billion over a decade by taxing investors that purchase large numbers of single-family homes, with revenue split between the Housing Trust Fund, HTF, and Capital Magnet Fund, CMF, to help build and rehab 285,000 rental units for extremely low-income Americans through HTF grants and help finance 2.7 million rental and home ownership units for low-income families via CMF, which leverages other public and private investments.

In other words, our bill would help build and rehabilitate millions of homes for American families and boost households competing for single-family homes with deep-pocketed investors, all without raising the deficit. This is a commonsense, fair proposal that tackles perhaps our Nation's largest challenge.

I am encouraged that President Trump has caught on to the fact that institutional investors are, in his words, ``crowding out families seeking to buy homes.'' He added in a recent Executive order ``that large institutional investors should not buy single-family homes that could otherwise be purchased by families.'' This is the very issue that the Affordable Housing and Homeownership Protection Act seeks to address, so I hope that we can build bipartisan support for its passage.

I thank the bill's endorsers--the National Low Income Housing Coalition, National Housing Law Project, National Consumer Law Center on behalf of its low-income clients, Americans for Financial Reform, and Consumer Action--and urge my colleagues to support this important legislation.

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