As an accounting major and economics minor student, I've identified the undue influence hedge funds hold in the housing market. This influence has led to the emergence of an almost monopolistic presence, directly impacting low-income earners who are unable to afford a home and are often displaced. In high yield areas, they acquire thousands of single-family homes, intensifying the inequality embedded in housing affordability. In fact, institutional investors bought 20% of homes in 2021 where single-family homes comprised a large portion of the area (source: Hot Stocks: Investing for Impact and Profit in a Warming World).

Increased presence of hedge funds in the housing market also reduces opportunities for small investors to access property investments with the capital available to hedge funds. Therefore, leading to consistent out-bidding and driving out of small investors from high-yield areas. In a recent Redfin survey, this impact can be seen by only 9% of small investors acquiring homes in concentrated institutional investor regions in 2021 compared to 22% in 2011.

Considering this, I propose the implementation of more stringent regulations that increase transparency and enforce reporting requirements regarding the acquisition of residential real estate by these hedge funds. Greater transparency will allow regulatory authorities, potential homeowners, and the general public to more accurately track and understand the magnitude of these purchases and their impact on local housing markets to apply restrictions where need be.

I believe housing should be accessible to all, not just a commodity for investment firms. Therefore, I am calling on the relevant authorities to restrict hedge fund acquisitions of single-family homes. Sign the petition to stand up for more equitable housing markets.