Why Are Big Investment Companies Buying Up Single Family Homes?
Companion podcast at the end of this article.
I could see that new homes being built might cost a bit more due to the inflation and increased costs of wood and supplies. But why would existing homes also cost so much right now? Home prices and monthly rents are rising more rapidly than inflation, so we decided to dig into it more and ask some questions worth pondering:
Why are home prices and rents increasing?
Why is it hard to find a home?
Why do homes sell immediately when they go on the market?
Who is buying up homes?
Why are they buying up homes?
Who is Buying Up Single Family Homes?
The first question we asked is who is buying up homes. This led us to some interesting information on the housing market.
Wall Street is purchasing houses to rent out. If your neighbors sell there homes, how many are bought by corporations instead of individuals? According to Redfin chief economist Daryl Fairweather, investors are buying 30% of the homes right now depending on location.
Gary Berman, CEO of Canadian company Tricon Residential, has quietly become one of the largest owners of single-family homes in the United States. Excerpt from 60 minutes interview:
Investors are buying single family homes and renting them out. They are paying top dollar and often above asking price to win the deal over individuals vying to purchase the homes. They also offer to purchase with cash, waive inspections, and purchase without even seeing the home. This, along with rising interest rates, makes it extremely difficult for individuals to purchase and has caused housing prices to skyrocket.
One of the tactics is to offer rent-to-buy options for people who aren't able to purchase a home. One such company that offers this option is Home Partners. "Home Partners presents itself in altruistic terms as a new path for ordinary Americans to become homeowners." However, the Financial Times reports that only 1 in 5 people actually were successful at owning their home after going through Home Partners. This means 80% were not successful.
Source: https://amp.ft.com/content/2267d715-6ff9-428e-959a-f0e379e581e9
Guess who Home Partners' biggest financial backer was? BlackRock - one of the largest investment firms in the world who make ESG more of a priority over shareholder earnings. We will cover ESG (Environment, Social, Governance) in a future article and podcast.
Guess who bought out Home Partners in July 2021? Blackstone.
Don't know the difference between BlackRock and Blackstone? BlackRock used to be called "Blackstone Financial"—it is basically an off-shoot of Blackstone. Blackstone is considered the country's largest landlord.
Source: https://www.cnbc.com/2017/06/22/blackstone-or-blackrock-schwarzman-and-fink-did-it-on-purpose.html
Corporate investors are willing to spend much more than the asking price for homes. Developers are building homes, renting them out, and then selling entire neighborhood because they make a lot more money doing it that way because big investors sweep in to purchase.
Why Are They Buying Up Homes?
Why would these investment companies want to purchase single family homes?
There are differing opinions on this. Some say that it is simply supply and demand, that there is more demand for rental homes.
Others say that it is a part of a larger global agenda. The World Economic Forum (WEF) has the 2030 initiative and The Great Reset initiatives. One of the "8 predictions" they promote is "You will own nothing. And you'll be happy".
I don't know about you, but the sense of ownership provides security, privacy, and a sense of accomplishment.
They say it’s only impacting the sunbelt states due to mass migration, but in Massachusetts, the rate of corporate purchases has doubled in 10 years, and some local residents are getting priced out.
Jeff Bezos is getting in on the action: https://www.breitbart.com/politics/2022/05/20/billionaire-jeff-bezos-hopes-enrich-himself-through-single-family-home-rental-market/
JP Morgan Chase is getting in on the action: https://www.wealthmanagement.com/sfr/jpmorgan-forms-joint-venture-1-billion-rental-houses
Is it By Design?
Interest rates are skyrocketing and mortgage rates are at an all-time high, all at the same time that big corporate investment companies are buying up 30% of the homes.
The mainstream news media, in preparation for "The Great Reset", also has been working to try and convince you how great it is to rent and how you can become a bad person if you are a homeowner. Almost as if it's all coordinated. Don't fall for the narrative that says this is “The New Normal”
It's Not Just Single Family Homes
Besides big investment firms buying up single family homes, Bill Gates is buying up hundreds of thousands of acres of farmland and land is being bought up by China. How much land in our country is owned by China? Why do we allow corporations and other countries to purchase land in America? Is it legal? If so, should it be? Contact your local and national representatives and ask them to change our laws so that this can't happen.
The news media and big tech social media try and stop people talking about this.
When people started talking about Bill Gates buying up farmland, Twitter put in their trends a "fact-check" to say Bill Gates owns less than 1% of farmland. Can you imagine anyone owning almost 1% of the farmland considering how many millions of acres of farmland there is? Bill Gates now owns over 270,000 acres.
Blackstone is also buying up student housing, office buildings, Hollywood studios, warehouses, bio-tech lab spaces, and multi-family buildings. You read that right - biotech lab spaces and Hollywood studios.
Source: https://finance.yahoo.com/news/blackstones-280-billion-real-estate-122000286.html
The WEF's 2030 plan includes planning for people to own nothing. Not just targeting home ownership, but they are also targeting other items we use everyday. They want us to eventually rent everything. They spin this as positive "less waste, no debt".
The WEF Forum called to reduce private vehicles by eliminating "ownership"
They also want us to rent everything within 50 years
What You Can Do
Don't let this global agenda with a goal of complete control over our lives succeed. There are some thing we can do to help stop it. It's up to us to stand up against these elite's and we're doing it.
Homeowners are fighting back. Some are creating new rules in their HOAs to limit the number of homes that can be rented out among other actions - a certain percent of people living in the community must be homestead and not non-homestead. I was the president of my HOA for several years. We put a rule in place in our By-Laws to only allow two homes maximum to be rentals in the entire community. Looking back now, I can see how critical it is. If you own a home and have an HOA, join the board and have the By-Laws reviewed to ensure this is included. You could take it a step further and require homes be sold to individuals and not corporations.
Also, if you are selling your home, find out who is making the offer. Is it an individual or a corporation? Don't give in to the enticing quick closing and cash offers that big investment firms will put forward. You can set these demands when you choose to sell.
We need to start getting our land back into the hands of the people. If you have the means to purchase land right now, you might want to.
Companion Podcast
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