With the coming AI revolution, many jobs will be destroyed. in 2006, in my area, there were subdivision springing up left and right. Instead, we have allowed businesses in many areas housing, education, medicine to goose their profit margins by raising prices rapidly, despite a lack of innovation or creation of more value. I dont blame him, hell probably work a couple more years then retire comfortably, but its one less independent business for me to patronize. Blackstone was the biggest force, and later spun off its creation, Invitation Homes, as a REIT to the public. Today $14.6T : $22T = 66%, much better. The concentration allows them to gain control of HOA boards and even of local politicians and police departments through donations. Dropping prices where industries make less profit and have to find ways to innovate and improve in order to stay in business and generating profits. Qualifying tenants is job one. Large Apartment development is difficult because the supply of zoned land is limited, and there is a lot on NIMBY opposition, so land prices have skyrocketed. (To clear up a common confusion: The investment firm Blackstone, not BlackRock, established Invitation Homes. The background was that the law was much older than any record of ownership. 2) Home builders had to sell fast to get whatever they could in order Profits dont mean much for big bank investors when the Fed just conjures up more fiat, whenever needed, to buy up whatever is needed to forward the agenda and hands it at zero interest to the buyer. Blackrock is buying homes from people willing to sell them. There are about 72,000 housing units, occupied and vacant, selected in the Current Population Survey (CPS) sample. The rentiers gains push up the cost of living. Looking at just the gozintas and gozoutas of the housing market black box, I see massive cheap FED money competing with individual savings going in and an increase in corporate owned housing going out. But the larger villain in Americas housing crunch isnt the faceless Wall Street Goliath overseeing your apartment building or house; its the forces stopping any new apartment buildings or houses from existing in the first place: your neighbors, local laws, and local governments. It look like a twist on Public Housing .. the Hard Earned Tax Payer Dollar sure comes in handy, for some. Taxes and inflation are regressive in nature. CulturalHusbandry (@APhilosophae) June 9, 2021 People will say "They can't just piss away money on buying tens of thousands of houses that are all at a loss." BlackRock is looking to redistribute as much as $120 trillion dollars! This nearly split the Tory Party in the 19th century over the Repeal of the Corn Laws. Every time the house resells, they will receive a percentage, a royalty, from the sale of the property. I would avoid a town with a large number of these rentals too. A single family build to rent doesnt have that obstacle. Of course, smart money should be fleeing to the hinterlands, instead of bidding against each other. Central banks have created a disincentive for buying government bonds. Another unanticipated perversion. It not a website, nor a conspiracy, and has no ads..in fact its a paper considered property of US Govt. Liberalism doesnt care about people, it cares about power. So, why were people upset at BlackRock after the Wall Street Journal was published? Blackstone's co-founder, billionaire Steve Schwarzman, said during an interview on Squawk Box that he and Fink " started in business together. While Invitation Homes uses a mixture of debt and cash from renters to buy houses, its offers are almost always all cash, which is a big leg up in a competitive market. Blackrock, among others, are buying up thousands of new homes and entire neighborhoods. Maybe this could be #1 of the Great Reset 8 Predictions for the World in 2030. Rental vacancies hit 15% in 2007. In New Jersey/New York, we had private companies buying blocks of foreclosures, sight unseen, repairing them and offering them on the retail market. BlackRock owns America's homes and a whole lot else I appreciate it immensely. Just Blackrock. There are a few strategies these companies can leverage. Several articles not just WSJ says it is. The WSJ also reported that D.R. Others of that generation include American Homes 4 Rent. At a time when households are holding record levels of household debt, the only way that household consumption expenditure will underpin sustainable GDP growth is if wages growth rises. Everything I know about economics came from Bill Mitchell. Is BlackRock Buying All of the Houses? - A Wealth of Common Sense Disposable income = wages (taxes + the cost of living) He couldnt get them to leave. Brick & Mortar Everyone pays their own way. hoping for massive rent increases. Your freedom will be bought cheap. But it will all be controlled by the billionaires. Its your property appreciating profit .. FOR YOU MAN. investing The one I won was from an owner in California and the house is in Texas. Horton had built a subdivision of 124 built-to-rent houses in Conroe, a city near Houston, had found tenants for them, and then marketed the whole subdivision in December last year. I do agree that housing is overpriced but I am not sure if we will see jingle mail again and a lot of foreclosures. Scan this QR code to download the app now. forbearance So when do you guys stop thinking its a conspiracy theory? These published Census rental vacancy rates are total bull s$it. It's like they are making entire family neighborhoods into AirBnB-lands because they know . Black stone owns and controls in a beneficial manner 17,000 homes. The suffering of labor was way worse, child labor, 6 day 12 hr work weeks, no safety considerations if it interfered with production (for example, it stated 1 in 11 could expect to die (possibly included total disability, I only watched once) in Carnegies steel mills. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. They are going to take good care of the home, or at least they will until they determine they will not exercise their option. Why are corporations, pension funds and property investment groups buyingThe Great Reset The Great Reset: BlackRock Is Fueling A $120 Trillion Transformation On Wall St. Landlords are mostly vilified on this site by losers who blame them for their pathetic existence, but not for us, you would be homeless. Sure its not direct and there are complex paths and many subsystems, but it is analogous to your arguments that FED money props up the stock market. The parasites will next maintain an interest in the properties in perpetuity. Yes, BlackRock's Home-Buying Spree Should Concern You - based underground Blackstone caused that TP shortage last year. Japan Mr Richter is out of beer mugs,he mentioned it in his previous post.Takes 4-6 weeks to replenish the supply,container & beer mug chip shortage etc. Further, as it is future looking, it might provide investment ideas for those so inclined. Rentiers / Landowners / Landlords / other skimmers, who are just skimming out of the system, not contributing to its success. It now rents out 80,000 houses. Of all the options to get out of this financial mess, war is at the bottom of my list. By then their practices were destroyed and the stock was worthless. Florida built more than 130 desalinization plants. They want to END it, as all corporations do better under dictatorships. You will own nothing and Like It!!! Cookie Notice The issue of vacant 2nd homes is related to the issue of what else are people going to do with the money if they sell? This concentration allows them to have an influence greater than the same number of individual homeowners. Cars & Trucks It partnered with J.P. Morgan Asset Management to build $625 million worth of rental houses. Blackrock is pursuing an investment strategy that will make it harder for young Americans to own homes. 7) In 2011 Blackrock, Sam Zell were buying at below wholesale prices to saved the RE market. Blackrock is buying up US homes like no tomorrow - Strange Sounds Single family units have both the potential for either a retail or a wholesale exit. There is a fundamental problem in our society, where everything is financialized. Has all that been discredited? In terms of how they choose renters, they charge for credit reports and background checks, but may not really care about the results. Why do Americans keep voting for this? No, Blackstone Didn't "Buy 17,000 Houses" out from under Desperate Is an old age tradition that landlords hold sacred. Through law and custom, the U.S. has encouraged people to buy and cherish their houses. Hand on your heart now & dont cross your fingers behind you back please. Housing has not kept up with population growth. Employees get their money from wages and the employers pay the cost of living through wages, reducing profit. Fundrises first project, Maketto, in Washington D.C. funds were raised from any residents in D.C. or Virginia .. they could invest as little as $100, making it the first crowdfunded real estate project in the US. Everyone of them were vacant. BlackRock buying homes : r/NewLondonCounty - Reddit Lots of interesting comments. This is all bad for families. How Low Interest Rates Sent Institutions Like Blackrock Into Bidding It seem like a pretty decent deal for renters. Federal Reserve One advantage of being a sociopathic monster who doesnt care about ruining peoples lives is that when the mob comes looking for you, they cant find you because you live on a secret moon base made of gold, or something.. > Blackstone Real Estate, told the Wall Street Journal. Both Democrats and Republicans are part of the sham and the mass media (both sides of the political spectrum) are the gatekeepers to divert your attention away from this reality. Why are corporations, pension funds and property investment groups buying. I dont know how the current deals work. So the prices of things get more expensive and people put themselves in debt to buy a house and a car and an education at prices that have been massively inflated. There is the idea out there that you buy, rent out & bleed the property for all its worth & then sell the dump. I read it all. a well formulated thesis, saying the unsaid, separating the wheat from the chaf, with minimal moralizing about how the markets should be immutable. Investment firm Blackstone has struck a $6bn deal to buy a company that rents out over 17,000 single-family homes across the US, a sign of investor . I am speaking about fly-over land so the east and west coast could be a different beast. HUGE inflation ahead if their play is correct. Because, like anywhere else in the world, they dont seem to be able to enforce a fairness to all agenda. Meh. That way the GSEs, who backed the MBS, can stay whole and not go bankrupt. They will come up with some way to provide a basic subsistence living for people, to appease them. The stability of an subdivision typically comes from you long term home owners. Easy there. So there appears to be more than mailed surveys. Nope, not BlackRock. Here are some of my observations, having rented from a mega landlord. Our housing gets built on smaller and smaller lots, cramping people in together. But in many places the counter protests and pushback by renters rights groups, antifa etc. That is a 50% rise. What I can confirm is that Blackrock has bought more than 20,000 homes in Florida under $500K. And if you outsource it to someone for a commission, you are guaranteed to fail. CulturalHusbandry on Twitter: "Thread. Blackrock is buying every single That means with 5-20% down they can get mortgages on 130-170k homes every year. Far worse than corporations taking a few thousand units off the market for owners are the governments and noisy NIMBYish residents taking millions of units off the market for owners and renters alikeby blocking construction projects in the past few decades. If you have a good tenant they should be appreciated and treated well. In short there is a market need for LTO, as long as the Sellers are honest. Of those 140 million units, about 80 million are stand-alone single-family homes. But I agree, it just seems like housing shortages everywhere now. And 85% of the single-family rental houses are owned by small investors with 10 or fewer properties. Sort of like Frigidaire used to be for any refrigerator. BlackRock is Buying All Our Real Estate??? - YouTube At a price the landlord want/profit level. I guess AH4R has targeted Nashville over past several years. Employees get their money from wages and the employers pay the cost of living through wages, reducing profit. Tiny houses make single-wide mobile homes into an upgrade. Companies & Markets 2) Stephene Ross, 79Y, NYC, $7.6B, related co. Do built-to-rent deals work in a state with rent control? He had to pay them 6 months rent. Btw, that's the national average. However, they purchase disproportionately in specific towns or communities. Single-family rentals have probably been around as long as single-family houses. Bravo, How can we encourage Americans to support more housing construction near where they live? $$$ BBB CCC I heard about guys getting bought out for a couple of million and still keeping their practices. ET on April 29, 2022. Weve done about a dozen appraisals here in the Swamp in the last 2 months. BlackRock is a significant investor in mortgage securities, helping make capital available to individuals and families seeking to purchase homes. Never again for me! So tell me, where can I read more about the 20,000 homes in Florida bought by BlackRock? But In some cities I bet there was still just huge shortages, and people fleeing due to the ridiculous housing prices. What happens when you have a lot of short term renters? Homes are popping up on MLS and going under contract within a few hours. Home Partners of America buys homes for a specific renter that has gone through their counseling sessions, meets strict income and employment requirements; and will meet loan requirements and traditional financing standards to purchase the home at some point during the lease term. Exactly. What the WSJ article actually reported was that homebuilder D.R. 2) Snakes entering late, in fomo trade, will have a negative equity in a market drop. I just visited my long-time optometrist for my yearly; Id been seeing him for 38 yearswe got a mulligan on last yearand he seemed unusually brusque (we both like cars, and his assistants have had to pull him away to break up our conversations). A very big issue with blocking evictions long term, is that landlords wont be paying the utilities and non payers arent exactly known for paying the utilities. They housed workers in slums to get housing costs down. Donating to the local police force is a slippery slope. Blackstone didnt go around the US grabbing 17,000 houses, outbidding regular mom-and-pop buyers with its $6 billion war chest. In my experience, all foreclosures require some repairs and renovation and this can run into substantial cost. They had an Empire to get in cheap raw materials; there were no regulations and no taxes on employees. Not really fun for anyone, and if we still had any rental properties, would be selling them ASAP, even if RE mkt is down from recent peak. If Im the so called BS spreaderwhere do I collect my award? Malinvestments all looking for some type of return due to the fake interest rates. Thats the idea. This activity then leads to price increases which cause affordability issues for home buyers. Its easier to measure rental vacancy rates, but even they are hard to come by. Employees get their money from wages. BlackRock, other investment firms 'killing the dream' of home ownership Great article .. 1) Donald Bren 82Y, Ca, $17B, Irvine co. In this video we are going to cover why BlackRock and others are buying so many homes, what this affect is on the already hot housing market, and what the possible implications will be of having major financial . Blackrock alone has a 10 billion a year surplus. No it wasnt you lying *#*$*##. But I was wrong. 22 021 770 shares. Maybe that is why it really does not move up or down much as opposed to the rental vacancy. In the case of DuPont, BlackRock is the second-largest shareholder with 4,33 percent - i.e. Personally sold my last rental 4 Plex in 2015. Providing capital for new housing construction BlackRock is invested in several programs that are providing financing to build new homes and add to U.S. housing supply. What was new in 2011 and 2012 was the entry of big PE firms with huge amounts of money buying tens of thousands of homes out of foreclosure during the depth of the housing bust. Are we suck between a rock & a hard place here ?? Nope the banks are not interested in that he said. Shouldnt that be nobody being able to provide for their own future? I think the WSJ readers, while maybe missing the specifics of the article, instinctively see the crux of the matter. I hear that even the Hong Kong property market is doing well, as the takeover of a tyrannical communist government doesnt faze the population. BlackRock Is Not Ruining the U.S. Housing Market Yup, those folks that got tangled up in reading headlines sure had a lot of fun getting angry about BlackRock driving out first-time homebuyers with this $32 million war chest. The firm has purchased legacy businesses and fintech. I think some really decent inflation will do the same thing as a 15 year mortgage mentioned here. One ring to rule them all. Are pension funds starved for yield headed for even deeper trouble investing in them? The rent to own business is going to get a makeover courtesy of smart contracts in the blockchain. Please read our Privacy Policy. Well written, fairly lengthy and very very comprehensive. In the arcane world of military acronyms (which is itself an acronym AbbreviatedCodedRenditionOf NameYieldingMeaning) BS also stands for Bogus Science,Blowing Snow,Battle Shout. sit back on your huge pile of cash and watch idiots trying to rip off other idiots until someone is left holding a steaming pile of s**t they paid too much for. Obama used Sec 8 to integrate white neighborhoods. 5) Today the 10Y yield is < 1.5% to enable lower mortgage rates. Dont yell at me; I didnt name them.). If you dont get that right you are screwed from the outset. Somehow, that slipped under the rug, I guess. The FED will buy the bad MBS just like they did starting in 2010 when they bought up all the Bear Sterms and Lehman Brothers MBS. What I have seen over the past 10 years are tons of Luxury apartment complexes which were 15 years ago zoned for single family homes communities. Instead of having you maintenance people traveling all over town, they just can focus on one neighborhood. This is going to come to a head and we will see interest rates rise because big money is looking at the return on renting out homes rather than investing in bonds. con someone into buying it at the highest, most morally suspect price you think you can get away with BlackRock is most certainly buying up single family homes through their subsidiaries, it is dishonest of them posting such an inanity on their website of "setting the record straight." Don't want to ban them, but billions of tax dollars have in fact ended up in their coffers which have absolutely unequivocally been used to buy single family homes with the intention of renting them out to us at . Berlin. I see people putting cedar exteriors on RV trailers and calling them tiny houses. Investors of all kinds are very active in this housing market, now buying at prices that might make it tough to rent the properties out profitably. https://www.census.gov/housing/hvs/files/currenthvspress.pdf. Over 67 communities so far. Although expand the system under analysis to include any new government regulation, and anything could happen. The info is collected by census bureau workers not just a mailed survey. Thats the kind of change that might impact supply meaningfully. I do remember seeing rental vacancies doubling and rising to 15% in the mid-2000s and I was thinkin that could not be good. LOL. Having been in the single-family business for a while (now retired) I can tell you that I am very skeptical of the idea of big businesses managing SFH. I have owned residential rental real estate before and my parents have done so for decades. What sort of capitalism is this? As someone who lost their home during the financial crisis in Florida, I had a front row seat to the emergence of the mega landlords. 5 years ago the average rent was $800 and now in 2021 it is $1200. I think it was always this way, but the internet amplifier makes it more obvious and faster. They clearly say Blackstone bought these homes. Blackstone Real Estate Income Trust, the fund that is buying Home Partners, invests across commercial real estate multifamily, industrial, hotel, retail, and office and with this acquisition is now moving into the super-hot segment of commercial real estate, single-family rentals. Corporations can afford teams much larger and more sophisticated than a single real estate agent. As the Vox reporter Jerusalem Demsas explains, institutional investors tend to buy homes that need significant repairs. make a bunch of garbage as cheaply as you can house My Mom paid off her 30 year mortgage in mid 1980s and her monthly house carry cost went down about $75. Given that South Florida was already ground-zero for second and vacation homes nationally, the explosion of demand since the end of the lockdowns has created the frenzied effect we've seen in South Florida's market. And given their clear bias, you often know which way they get it wrong. Cost to FDIC Fund: $13 Billion, Remember the Lithium Shortage & Huge Price Spike? Blackrock is buying every single family house they can find, paying 20-50% above asking price and outbidding normal home buyers. I started discussing this built-to-rent trend last year, including in my podcast THE WOLF STREET REPORT in early October. Blackstone didn't go around the US grabbing 17,000 houses, outbidding regular mom-and-pop buyers with its $6 billion war chest. The overall texture of the U.S. housing market would remain the same. There is another growing problem with build to rent. Every rental house a homebuilder builds is one less conventional owner-occupied house provided for the market (this assumes construction companies do not have unlimited resources a likely assumption). Newspapers and real estate websites picked up on the story, and they also began writing smear pieces about BlackRock. Ahh the tried and true mythologies never die. Most folks dont know how many of these foreclosed homes were in REO portfolios and sold off to investors. I guess we have and maybe always have been a society of easy headlines narrative, just like 08 was all about subprimeblah blah but when you dig deeper into the data and root cause, the narrative falls apart pretty quickly.