Why Wall Street Is Buying So Many U.S. Homes

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2023-02-21に共有
Some Washington D.C. lawmakers want to limit Wall Street's role in the housing market. In recent years, a small but mighty group of corporations bought hundreds of thousands of homes in sunbelt-region suburbs. These homes are traditionally a crucial investment for American families. But rising home prices are shutting would-be homebuyers out of the market. Meanwhile, financial groups are profiting from rising rents while their subsidiaries build small amounts of new standalone homes in the U.S.

Since the early 2010s, Tricon Residential, Progress Residential, American Homes 4 Rent, Invitation Homes have each bought thousands of homes. They've also added to the housing supply in some cases with built-for-rent communities.Some of these companies are financed by private equity firms like Blackstone and investment managers like Pretium Partners.

"It's almost a captive market" said Jordan Ash, director of Labor-Jobs and Housing at the Private Equity Stakeholder Project. "They've been very explicit about how people are shut out of the homebuying market and are going to be perpetual renters."

These calls come after fierce housing inflation hit many Sun Belt states, including Texas, Florida and Georgia, according to the National Association of Realtors. 

By 2030, the institutions may hold some 7.6 million homes, or more than 40% of all single-family rentals on the market, according to the 2022 forecast by MetLife Investment Management.

Watch the video above to learn about the rise and future of corporate landlords in the United States.

Chapters:
01:28 — Chapter 1: Landlords
05:02 — Chapter 2: Housing stock
07:55 — Chapter 3: Homebuying
09:46 — Chapter 4: Solutions

Produced by: Carlos Waters
Supervising Producer: Lindsey Jacobson
Graphics by: Jason Reginato
Additional Production by: Bryan Rager

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Why Wall Street Is Buying So Many U.S. Homes

コメント (21)
  • Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
  • @Elkemartin213
    The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?
  • I think a housing crash will happen because all those people who bought homes over asking price, although it was at a low interest rate, they are over their heads. They have no equity if the housing prices continue to go down, and if for whatever reason they cannot afford the house anymore and it goes into foreclosure because even if they try to sell, they will not make any money. I think this will happen to a lot of people especially with the massive layoff predicted for the future and the cost of living rising at a high speed.
  • @TimeBucks
    There should be legislation to deter these investments
  • This issue needs to be responsibly addressed before average Americans are barred from owning any real estate. This is how corporations will continue to keep us renting forever and it’s absolutely an attack on America’s 99%. Average people cannot compete against large companies.
  • Nobody is trying to fix the root problems we have in this country. Everyone is trying to make enough money so that the problems don't apply to them anymore
  • I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
  • As someone who’s saving up for a home, this infuriates me like nothing else. No corporation should be allowed to buy soooo many home. And therefore, shut out the ability for regular, tax paying citizens to not be able to afford to compete.
  • Wall Street messing with people's basic shelter like this is dangerous. TAX PRIVATE EQUITY NOW!
  • One of the dangers of short term investing in an inflationary real estate market is the risk of getting caught in a real estate bubble.
  • Another reason it's less likely to happen that way is that there's already too much demand waiting to absorb it, regardless of how many people are panicking and calling the crash. Nobody, at least not the general public, predicted this in 2008. According to another reply, the ownership rate peaked in 2004. We are currently at the median level, having peaked in the second quarter of 2020. It fell by 3% between 2008 and 2012, from 68 to 65 in the second quarter of 2020.
  • I've worked in home lending for 20yrs. I've never seen the deck stacked against consumers to this degree. Debt ratios are at an all-time high and now interest rates are very high. Yes, the rates have been higher, but the average house price was significantly less at that time.
  • For 2023, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars. transportation, e-commerce among other sectors are expected to experience growth, but who knows, the market has been a basket of surprises.
  • "You will own nothing and be happy" - I'm just not sure about 'being happy', but the 'own nothing' part is unfolding in front of our eyes.
  • @sg8953
    I'm in a city in the Midwest. I bought my 1950s 3/1 house in 2014 for $17k and now I could easily sell it for about $150k and that's still a bargain price around here. Homes in my neighborhood used to rent for about $750/ mo. Now it's $1200-$1500/ month. Wages certainly didn't increase like that. I'm am HOUNDED by investors calling and sending letters. It's disgusting.
  • Wall Street picked so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $400k portfolio is down by approximately 20 %, any recommendations to scale up my ROI before retirement will be highly appreciated.
  • Inflation-hedging is a strategy to protect your wealth from the eroding effects of inflation. By investing in assets that are likely to grow in value in response to inflation, you can ensure that your money retains its purchasing power over time.
  • Finally a piece of journalism showing the true cause of the inflated market! It’s not the small consumers fault getting a $1.5k Covid stimulus check, perhaps it’s the 75% of stimulus going to large companies could have contributed.
  • Our economy struggling with uncertainties, housing issues, global fluctuations, causing instability, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.I have $100k that i like to invest in a non-retirement account, any advice on that?