Texas Senate Bill SB1979

Texas 2023 - 88th Regular

• Filed: 3/8/23
• Out of Senate Committee: 4/28/23
• Voted on by Senate: 5/3/23
• Out of House Committee: 5/16/23
• Voted on by House: 5/22/23
• Governor Action: 6/16/23

Caption

Relating to an annual study by the Texas A&M University Texas Real Estate Research Center of the purchase and sale of single-family homes by certain institutional buyers.

Impact

The passing of SB 1979 is expected to provide lawmakers with critical information on the growing trend of institutional buyers in the Texas housing market. With rising home prices and increased competition from corporate buyers, the bill serves as a response to concerns that such entities may be pricing families out of the home ownership market. This legislation is designed to equip the Texas legislature with data to potentially explore future policies aimed at enhancing housing affordability and maintaining fair market practices.

Summary

Senate Bill 1979 mandates an annual study conducted by the Texas A&M University Texas Real Estate Research Center focusing on the purchases and sales of single-family homes by institutional buyers in Texas. The bill aims to compile data on how these entities, defined as groups purchasing 10 or more single-family homes per year, impact the housing market and affordability for individual buyers. The report generated from this study will include details such as the number of homes bought and sold, foreclosure figures, and the appraised values of the properties.

Sentiment

The sentiment surrounding SB 1979 has been generally positive among those who view it as a necessary step toward understanding the complexities of the real estate market in Texas. Supporters, including various lawmakers and housing advocates, argue that this study will shed light on market trends that can inform future policy decisions. However, there remain concerns about the effectiveness of the bill in actually addressing the affordability crisis and whether it will lead to actionable measures to protect homebuyers.

Contention

Discussions around SB 1979 have noted the importance of understanding institutional buyers, as competition from such entities can distort housing availability and pricing. Critics of institutional buying practices argue that they prioritize profit over community needs, leading to unsustainable market conditions for residents. While the bill aims to gather data and assess these impacts, some are concerned that it may not lead to immediate regulatory changes to benefit individual homebuyers. Nonetheless, SB 1979 represents a significant acknowledgment of the evolving dynamics in the housing market.

Texas Constitutional Statutes Affected

Education Code

• Chapter 86. Texas A & M University
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