At Confirmation Hearing, Ranking Member Warren Questions Turner on Federal Investments in Housing Supply, Cracking Down on Private Equity
Warren: “[S]ome people are trying to take advantage of our housing shortage instead of trying to fix it…[W]e've got to be laser focused on lowering the cost of housing for families.”
Turner: “I believe we do have a housing affordability crisis in our country... If I am confirmed by this committee, I look forward to digging into this more with you so that we can look at this issue together.”
Washington, D.C. – At a hearing of the Senate Committee on Banking, Housing, and Urban Affairs (BHUA), Ranking Member Elizabeth Warren (D-Mass.) questioned Mr. Eric Scott Turner, nominee for Secretary of the Department of Housing and Urban Development, on his plans to boost federal investment in affordable housing supply and crack down on private equity in the housing market.
Mr. Turner declined to commit to additional federal investment in programs, which Warren stressed was critical to building more homes and lowering housing costs for families.
Senator Warren highlighted that some actors, like private equity, are trying to take advantage of the country’s housing shortage instead of trying to fix it. In 2011, no single investor anywhere in America owned more than 1,000 single-family homes. By 2022, just five investors collectively owned nearly 300,000 homes.
“Do you agree it is a problem if big corporate investors are beating out families to try to buy homes?” asked Senator Warren.
In response to Warren’s questioning, Turner agreed, “We do have a housing affordability crisis in our country. The more capital we get into the market, the better,” and confirmed that if appointed, he would work with Senator Warren to address the affordable housing crisis.
Before the hearing, Senator Warren wrote to Turner, pressing him on his plan to effectively lead the agency and deliver for American families. Senator Warren posed 75 questions across the 13-page letter on policy areas ranging from housing supply to homelessness to natural disasters.
When Turner’s nomination was announced, Senator Warren made clear that it was her priority to learn more about Turner’s plans to address the housing crisis: “America’s full-blown housing crisis requires a leader who is serious about expanding the housing supply, taking on predatory corporations, and lowering costs for families. If Mr. Turner implements Trump’s Project 2025 plans, it will be a disaster for aspiring first-time home buyers and working people struggling to afford their rent.”
Transcript: Confirmation Hearing on the Nomination of Mr. Eric Scott Turner, to be Secretary of the U.S. Department of Housing and Urban Development
Senate Committee on Banking, Housing, and Urban Affairs
January 16, 2025
Ranking Member, Senator Elizabeth Warren: Thank you, Mr. Chairman. Mr. Turner, I want to ask you about why housing costs are so high. You recently said there is “an ever-growing need for high-quality, affordable housing in our nation.” Experts have said, as the Chairman said, we need about 7 million new housing units in America now.
There are a lot of explanations for our housing shortage. Local zoning and land use restrictions can make it harder to build homes. The cost of capital, which has been made worse by the Fed's decision to keep interest rates high, makes it even more difficult both to build and to buy housing. And there are places where the federal government can help.
Take the HOME program. HUD gives grants to states and localities to help build and preserve affordable housing, and it works. In its history, HOME has supported the development of more than a million affordable units nationwide, including more than 100,000 homes in your home state of Texas.
Mr. Turner, in 2023 you said that “It is more expensive than ever to build, and developers need access to more capital.” Do you support additional federal investment in programs so that we can lower the cost of building affordable housing?
Mr. Eric Scott Turner, nominee for Secretary of the Department of Housing and Urban Development: Thank you, Senator Warren. I appreciate our visit together. Thank you for your time. As you said, there are many factors to why housing is so expensive now. I believe first we have to get our fiscal house in order. Interest rates are at an all-time high, inflation—
Senator Warren: Fair enough, Mr. Turner, but I would like to focus because it's a big problem. I'm sorry to interrupt, but the chairman is going to be tough on time. I want to make sure I understand. Do you support additional federal investment in programs so we can lower the cost of building affordable housing?
Mr. Turner: Thank you, Senator Warren. What I support is maximizing the budget that we do have and making sure that the money—
Senator Warren: So, is that a no to additional investments?
Mr. Turner: It is a yes to maximizing the investment we have and making sure the programs we do have are meeting the intended need and serving those it is intended to serve.
Senator Warren: That gives me real pause. We established we have a terrible gap of affordable housing, and we have a program here that has helped close that gap. State and local governments, bless them, I understand they are doing what they can, but they don't have enough money to match the scale of the problem nationwide. What I am looking for is a commitment that we are at least going to look, try to get help to the state and local communities that are trying to build affordable housing.
Mr. Turner: Thank you. I look forward to looking at the HOME program and other programs, but my point is, there is record funding from HUD. HUD’s budget is $70 billion at this point, and we are still not meeting the need we are supposed to be meeting. And so I think we need to take inventory and maximize the budget.
Senator Warren: Which might mean we need more money. Let me turn to another topic. Unfortunately, some people are trying to take advantage of our housing shortage instead of trying to fix it. Private equity firms and corporate landlords have moved into local housing markets, and they have driven up costs even higher for families. In 2011, no single investor anywhere in America owned more than 1,000 single-family homes. By 2022, just five investors collectively owned nearly 300,000 homes. In fact, in your home state of Texas, in 2021, big investors moved in, and they bought a whopping 28% of all homes that went on the market.
Mr. Turner, the governor of Texas, Greg Abbott, recently said, "Corporate large-scale buying of residential homes seems to be distorting the market and making it harder for the average Texan to purchase a home." Do you agree it is a problem if big corporate investors are beating out families to try to buy homes?
Mr. Turner: I have not seen that statement from Governor Abbott, but I look forward to looking at this issue and even working with you and your staff on this issue. I believe we do have a housing affordability crisis in our country. The more capital we get into the market, the better. Obviously, we want the right people, qualified people, to invest. The stats that I saw said about 2% of institutional investors own single-family homes. If I am confirmed by this committee, I look forward to digging into this more with you so that we can look at this issue together.
Senator Warren: Well, I appreciate that. You know we've got to be laser focused on lowering the cost of housing for families.
Mr. Turner: Yes, ma’am, thank you.
Senator Warren: Thank you.
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