Robert F. Kennedy Jr. (RFK Jr.) wants a three percent mortgage for Americans, guaranteed by the government and funded by the sale of tax-free bonds. He added that the first 500,000 of these mortgages would be reserved for teachers.
"I'm going to give everyone a rich uncle, and his name is Uncle Sam," RFK Jr. said at a recent town hall meeting in Spartanburg, South Carolina.
Since entering the 2024 presidential race and announcing he would challenge President Joe Biden for the Democrat party nomination, RFK Jr. has promoted a platform centered on "healing the divide" and "restoring the middle class." He has committed to making it easier for Americans to purchase single-family homes while reducing the financial incentives for large corporations, especially with the ongoing housing crisis.
RFK Jr. blamed the policies of the Biden administration on higher food prices, credit card debts, energy costs and the affordable housing crisis. "I’m seeing people who are living at a level of desperation that I have not seen in this country ever," RFK Jr. told his audience.
Moreover, RFK Jr. pointed fingers at companies like BlackRock, State Street and Vanguard for aggressively pursuing a goal of owning all single-family residences in the United States.
"Usually, when a company buys a home with a cash offer, there is an LLC with an ambiguous name. It often can be traced back to one of those big companies," RFK Jr. explained.
Big corporations are taking advantage of the housing crisis
Large companies are taking advantage of the housing crisis. In a 2021 Wall Street Journal report, corporations were exposed to how they aggressively buy single-family homes to drive up rental prices. Similarly, Pew Charitable Trusts reported that investors purchased 24 percent of single-family homes in 2021, with that number rising to 28 percent in 2022. A study by MetLife Financial Management also suggested that institutional investors could own up to 40 percent of single-family homes by 2030.
This deprives Americans of "living the American dream," RFK Jr. said.
Meanwhile, Democratic Senator Sherrod Brown introduced the "Stop Predatory Investing Act" earlier this year. The bill seeks to eliminate federal tax breaks for corporations that own 50 or more single-family rental homes. This legislation, if passed, could prevent large investment companies from buying up large numbers of homes.
"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 in a statement. "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."
Apart from restricting tax benefits for large-scale investors, the bill also includes provisions to incentivize investors to sell single-family rentals back to homeowners or community nonprofits. Additionally, it aims to boost the housing supply by allowing property owners to continue receiving tax deductions on homes financed using low-income tax credits.
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