Zvi's Housing Roundup: The War Against Renters and the Build-to-Rent Ban
A Senate bill threatens 10% of new single-family construction by banning build-to-rent over 350 units.
Zvi's latest Housing Roundup dissects the deep-seated biases against renters embedded in U.S. policy. He highlights a stunning graph showing home asset values disconnected from actual rents—driven by ultra-low mortgage rates locked in during 2020-2021 (3% vs. today's 7%). Those with 3% mortgages refuse to sell, instead renting out their old homes and buying new ones, keeping inventory tight and prices sky-high. The result: renters are punished for lacking a down payment or flexibility, while homeownership is massively subsidized.
Most alarmingly, Congress nearly passed a housing bill that would have inadvertently (or deliberately, per Elizabeth Warren) banned build-to-rent developments of more than 350 units—potentially eliminating 10% of new single-family homes. Despite Democratic leadership's split (Senator Schatz called it a drafting error, Warren defended it as deliberate policy to block private equity), 90 senators voted for it. Zvi argues this war on renting ignores that build-to-rent is a vital supply mechanism, especially for those who cannot afford to buy or are waiting for lower rates.
- Locked-in 3% mortgages prevent sales, keeping home prices high and forcing potential buyers to rent instead.
- A bipartisan bill with 90 Senate votes would force any owner of 350+ rental units to sell, hitting build-to-rent developers hard.
- Elizabeth Warren insists the provision is deliberate, while Senator Schatz calls it a drafting error—rare public leadership split.
Why It Matters
Housing policy that strangles rental supply and punishes non-owners will deepen affordability crises for professionals and families alike.