Date: March 24, 2026
To: Chairman Ben Brown and Members, Senate Committee on Emerging Issues & Professional Registration
From: Lucas Caldwell-McMillan, Chief of Policy Staff, Empower Missouri
Re: Support for SB 920
Founded in 1901, Empower Missouri is the largest anti-poverty advocacy organization in the state. As part of our work, we convene a statewide Affordable Housing Coalition every month. This coalition is made up of individuals and organizations who are working to ensure every Missourian has access to safe, affordable, stable housing. On behalf of our staff, board, and coalition members, we are asking you to support and vote yes on SB 920, a bill to limit corporate ownership of residential housing in Missouri.
Today, it is estimated that the US housing market is short at least 6.5 million homes to meet the current demand for housing. Due to the stress of a limited housing supply on the market, the median sale price for a house in the US increased by 32 percent between 2020 and 2024, from $317,000 to $420,000. According to a survey from the Mortgage Bankers Association, 70% of Americans now believe that it is unrealistic to expect to purchase a home. Homeownership has been a cornerstone of the American Dream over the last century, but now most Americans feel that dream is out of reach. Last year, the National Association of Realtors reported that the average age of a first-time home buyer had climbed to an all-time high of 40. In addition, the share of first-time home buyers in the market dropped to a record low of 21 percent.
One factor exacerbating the shortage is the activity of institutional investors, who buy up housing inventory to flip or rent out for profit. Last year, real estate investors purchased 1 out of every 3 homes that came on the market. Today, real estate investors own about 20% of the 86 million single-family homes in the country. Investing in lower-priced homes helps investors maximize their profits, but stresses the market even further by preventing working class families from being able to purchase these homes for themselves. According to a report from Bankrate, investment companies are hard to bid against because they make cash offers to buy homes and are willing to accept them in as-is condition. However, after an investor flips a property, the new price is likely to be too high for buyers on a budget who may have been willing to rehab the homes themselves over time.
In recent years, more and more institutional investors are holding on to properties and using them as short-term rentals. Properties that could be occupied full-time are being taken off the market and rented out for just a few nights each month, providing a profit for their owners but depriving the community of necessary housing stock.
We believe that SB 920 is a necessary step in the right direction to ensure that our already limited housing stock is being used for its intended purpose– providing homes for Missouri families instead of profits for wealthy institutions.
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