Big investors are buying up single-family homes. Sen. Sherrod Brown has a plan to stop them.

On March 6, Data for Progress published a study that found housing costs ranked as a top concern for voters in 2024. That could be a boon for incumbent Democratic Sen. Sherrod Brown, who has made affordable housing a top priority.

Brown has served in the U.S. Senate since 2007. He is seeking a third term in November. His Republican challenger is car dealership mogul Bernie Moreno. This race is anticipated to be one of the most closely watched in 2024, as it could decide which party controls the Senate.

Much of Brown’s focus has been on ending predatory investing, which broadly refers to the practice of corporations and other wealthy entities buying up large quantities of homes. They profit from these purchases by renting out the homes, reselling them at inflated prices, or taking advantage of tax incentives. 

In 2021, 16% of home purchases in Cleveland, Ohio were by big investors. In Cincinnati, one company bought 29 homes on the same street. These investors often pay in cash so they can shut average home buyers out of the market. 

In July 2023, Brown introduced the Stop Predatory Investing Act.This legislation aims to prevent large investors from deducting interest or property depreciation from their federal taxes. It would also create incentives for big investors to sell single-family homes back to individuals and families.

“In too many communities in Ohio, big investors funded by Wall Street buy up homes that could have gone to first-time homebuyers, then jack up rent, neglect repairs, and threaten families with eviction,” said Brown. “Our bill will help prevent corporate landlords from driving up local housing prices, and put power back in the hands of working families, who need a safe, affordable place to live and raise their children.”

The Committee on Banking, Housing, and Urban Affairs held a hearing on the Step Predatory Investing Act in April. The legislation is awaiting further action.

Brown’s bill was born out of a series of listening sessions and Senate hearings that were held between 2022 and 2023. For the listening session, Brown invited individuals from multiple states to share their experiences living in rental properties owned by large corporate owners. 

Moreno’s website features a list of 16 campaign priorities, including “ending wokeness” and restricting abortion access. It does not reference housing.