Comment Detail

Comment

Director Thompson,

The Renter's Bill of Rights initiative that is taking effect could have tremendous benefits to renters across the country. The way the market currently functions is anti-competitive and mafia-esque in how housing providers all raise their prices in unison to leave renters with little to no options, or with options that do not leave them in a secure financial position. If these companies are receiving funding from GSE's, then by extension they are being funded by the tax dollars from the very tenants that these companies/housing providers are exploiting with recent increases. COVID and inflation have been convenient excuses for corporations to tout record profits year after year, and they always act as though bringing the same or less profit in as the previous year is the equivalent of being driven out of business. This is fundamentally not true, and we need to take an honest, critical look at housing nationwide to begin to remedy the issues created by under-regulated, predatory "marketplaces" that citizens of this country do not have an option to not participate in. From my perspective, my clients' options for renting and buying have gotten smaller and smaller since the 2020 boom and there are insufficient guardrails in place to stop the corporate entities from getting their way at the expense of the people. The message below is from NAR and I was not allowed to modify or delete it in any way. It does not reflect my views. Let me say again that I appreciate the work the FHFA is doing and hope to see more changes in how rentals are regulated that can potentially benefit all who are renting.

Thank you for the opportunity to respond to your Request for Input (RFI) on how the Federal Housing Finance Agency (FHFA), in its oversight of Fannie Mae and Freddie Mac, can best provide affordable housing opportunities for renters. Approximately 40% of the National Association of REALTORS®'s (NAR) 1.5 million members own at least one rental housing unit, playing a vital role in providing safe, quality, and affordable housing in neighborhoods nationwide.

As the FHFA examines ways to improve access to affordable housing, it is critical to acknowledge the most significant driver of housing unaffordability is the limited supply of available housing. According to NAR data, the United States has an underproduction gap of over 5.5 million units – a key underlying reason housing costs have increased. On top of this, inflation has increased the prices of goods and services for all Americans. As housing providers strive to provide affordable housing opportunities in their communities, they also contend with rising mortgage rates and increased costs for supplies, services, and maintenance. When inflation is high, the prices of materials increase. That means it becomes exceedingly more expensive for construction teams to build new homes or renovate existing ones. Ultimately, these high costs spill into the housing market and lift home prices for new builds and existing housing.

As REALTORS®, we are committed to upholding the very specific provisions of our contracts with residents, and we often go above and beyond what is required to ensure residents have safe, quality, and affordable places to live. Rental housing is a deeply complex issue that is unique to every community. Creating additional layers of policies to a space that is already heavily regulated by state and local governments will have severe unintended consequences for renters as housing providers are leaving the market in communities where affordable housing is sorely needed.

Affordable housing is pivotal to creating paths to upward mobility for people across the country. I appreciate your commitment to ensuring we achieve this goal without impeding the creation of much-needed housing supply. Kyle Raper