Bill Overview
Title: HOME Act of 2022
Description: This bill directs the Department of Housing and Urban Development to carry out investigations and other activities to address market manipulation and the role of institutional investors in the pricing of rental units and single-family homes. It also makes it unlawful to rent or sell a dwelling unit or single-family home at an unconscionably excessive and exploitative price during a housing emergency declared by the President.
Sponsors: Rep. Horsford, Steven [D-NV-4]
Target Audience
Population: Renters and home buyers
Estimated Size: 100000000
- The bill targets issues related to market manipulation and price control in housing, which directly impacts renters and home buyers.
- Institutional investors involved in housing markets are also affected as they will be subject to investigations.
- This bill can have secondary impacts on construction companies, real estate agents, and landlords, but they are not the primary target population.
- The policy is implemented in times of a declared housing emergency, implying that areas and populations where housing emergencies are declared will be most affected.
Reasoning
- The policy targets renters and home buyers affected by market manipulation, focusing on those facing housing emergencies.
- Since the HOME Act targets excessive and exploitative pricing by institutional investors, those in areas with declared housing emergencies will be the primary beneficiaries.
- Budget limitations mean that not all eligible individuals will be covered at once, thus the interviews focus on a range of potential impacts from direct high benefits to none at all.
- Considering the scale of the issue, we expect that those directly facing housing emergencies will see the most significant changes in wellbeing.
Simulated Interviews
Software Engineer (Austin, Texas)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- The recent rent spikes have been really stressful, and I'm glad there's something being done to investigate this.
- I hope this act will force landlords to reconsider exploitative pricing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 9 | 4 |
Real Estate Agent (New York City, New York)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- This act could complicate the real estate market, but it's necessary to curb exploitative practices.
- I'm worried about the impact on my business dealings with larger investors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Retail Worker (Detroit, Michigan)
Age: 28 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- It's been tough finding affordable housing that meets my basic needs.
- I hope this act will lead to better housing options.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 9 | 3 |
Single Mother (Miami, Florida)
Age: 42 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Hoping the Act will help keep rents reasonable.
- I've struggled to maintain housing stability, so this is promising.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 3 |
| Year 5 | 7 | 3 |
| Year 10 | 7 | 2 |
| Year 20 | 8 | 1 |
Retired (Chicago, Illinois)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- While I'm not directly affected, I think it's a good move for those struggling.
- There need to be measures to support others, even if I'm not impacted personally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Tech Startup Founder (Seattle, Washington)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- I hope this act ensures that housing prices don't escalate further when I decide to buy.
- Market manipulation needs more oversight to create a fair buying environment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
University Student (San Francisco, California)
Age: 24 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 8/20
Statement of Opinion:
- Rent is ridiculously high, and moving won't be easy considering my school placement.
- The act gives hope that I might finally see rents become reasonable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Landlord (Phoenix, Arizona)
Age: 48 | Gender: other
Wellbeing Before Policy: 9
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- It's important that the housing market remains fair and competitive.
- I support the act as long as it doesn't unfairly penalize small landlords like myself.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Retired (Atlanta, Georgia)
Age: 70 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I hope this will help my grandchildren find affordable housing.
- It's necessary for the younger generations to have better opportunities than what is currently available.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
High School Graduate (Philadelphia, Pennsylvania)
Age: 19 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- This act could prevent families like mine from facing such instability.
- It's crucial to keep rents manageable for long-term happiness.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 9 | 2 |
Cost Estimates
Year 1: $80000000 (Low: $60000000, High: $100000000)
Year 2: $82000000 (Low: $62000000, High: $102000000)
Year 3: $84000000 (Low: $64000000, High: $104000000)
Year 5: $88000000 (Low: $68000000, High: $108000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The ability of HUD to effectively enhance its investigation and enforcement capabilities is vital for the policy's success.
- The declaration of a housing emergency is a pivotal factor that will trigger policy measures, varying costs and impacts significantly.
- Coordination with state-level housing authorities can affect efficiency and effectiveness in implementation.
- Long-term effects on the housing market stability can offset initial policy costs.