large investment companies buying up homes in entire cities, turning people into renters - Politics Forum.org | PoFo

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#15176712
video here: BlackRock, other investment firms, buying up homes, forcing rental boom| Latest News Videos | Fox News


The New York City risk and investment management giant BlackRock is among several high-powered firms pushing working families out of the housing market and into rentals, therefore depriving them of capital and the opportunity to build credit and equity.

According to a Wall Street Journal report, BlackRock - led by billionaire Laurence Fink - is purchasing entire neighborhoods and converting single-family homes into rentals; while in cities like Houston, investors like Fink account for one-quarter of the home purchasers.

Journalist Pedro Gonzalez said that the actions of companies like BlackRock's are leading 40% of American renters to believe they will never be able to purchase a home.

"It is killing the dream and giving us a nightmare of dispossession."

The impetus for firms to mass-purchase housing is to underwrite pensions and pad their books by spiking housing prices.

But, Gonzalez warned that these reckless actions will only accelerate the next housing bubble to burst, as it did a decade ago.

"The same institutions also promote progressive [political] policies like environmental policies that also raise the price of housing - and they push for more immigration, like JPMorgan Asset Management," Gonzalez reported.​

BlackRock, other investment firms 'killing the dream' of home ownership, journalist says | Fox News
https://www.foxnews.com/media/blackrock ... -ownership

That sounds a little unfair if they're going into certain cities with prime real estate and buying up a large percentage of the total homes just to push up the home prices and make sure would-be homeowners can't afford to buy. Which will force them to rent, if they want to stay in that city. It seems a little like a monopoly, or trying to corner the market, on a commodity which there is a scarce supply of.
(The economist Henry George would probably have had a few things to say about this too)

BlackRock is an $8.6 trillion global investment management corporation. That gives them the ability to buy up housing in entire cities.

Once the people in those cities are pushed into rentals, the company that owns these homes can squeeze more money out of them.
#15176718
As a relevant aside, the exact same thing happened in Hong Kong over the 90's and 2000's. Local billionaire holding companies bought out all the housing properties and furthermore lobbied the HK government to de-zone and ban the construction of more government funded housing on 90% of territory. Now rent has gone up and of course purchasing outright is impossible for 99% of the locals. A core tenet of the Basic Law prevents Beijing from intervening as it would mean direct socialist intervention/confiscation of entire apartment blocks and this also applies to forcing changes in zoning laws. So Beijing can't intervene, as this particular issue has no relevance in terms of sovereignty and foreign meddling, situations where it holds full legal power and can intervene as it did recently with the CIA backed rebel movement.

This is simply the result of unregulated capitalism. It is happening in Sydney here too, and all over the world. Enjoy.

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