The concern I have is that it creates institutional incentives to manipulate the housing market. In countries like Canada, New Zealand, Australia and the UK, fortunes have been made by limiting housing development and finding ways to profit from the shortage of housing and the corresponding rising prices. These institutional investors now have a stake in a housing shortage, their interest in this market suggest they are they are betting on it.
America is the only English speaking country to largely avoid this trend, I am sure these institutional investors are very aware of that.
I think there's a good chunk of the populist left/right that's just incoherent on housing. It typically goes like this:
1. Homeownership is good, because it's the only way for middle class families to build wealth.
2. Blackrock buying homes is bad, because it raises housing prices, which makes it harder for middle class families to buy homes.
3. Therefore, to help middle class families, we should prevent Blackrock from buying homes, lowering prices.
BUT YOU CAN'T BUILD WEALTH IF HOUSING PRICES DROP!
Personally, I suspect a lot of this angst is coming from people that also want to be landlords. But as a renter, I don't care if I rent from an institution or from a small landlord. At least the institution doesn't act like I'm taking food away from his family when I request some repairs.
I'd be curious to know if Coven compared the interest rates charged to corporate property buyers. (If they use financing.) And also whether this is just another big bank grift to bailed out by taxpayers when/if the market turns.
I’m curious why you wrote this piece. This isn’t a new phenomenon. And I would argue that it’s extremely bad for America. There’s no room to interpret this in any other way IMO.
“But when they (Institutions) buy a home, prices increase,” he told me. “This causes builders to build homes, and this causes small landlords to potentially exit the market.”
If you replace “institutions” with “the government” what do you get?
It’s not a coincidence that we have more regulations and fewer (less than zero) new banks since 2008’s GFC.
This is corruption at the highest levels playing out in front of our faces. If you want to dig deeper check out government backed “student loan asset backed securities.” SLABS. There’s a reason tuition is rising at breakneck speed, the value of education is plummeting and activism is the new opium for the masses.
It all plays in to the main theme of the world since the WEF and globalists decided they could “make our lives better” through less choice and personal accountability.
The concern I have is that it creates institutional incentives to manipulate the housing market. In countries like Canada, New Zealand, Australia and the UK, fortunes have been made by limiting housing development and finding ways to profit from the shortage of housing and the corresponding rising prices. These institutional investors now have a stake in a housing shortage, their interest in this market suggest they are they are betting on it.
America is the only English speaking country to largely avoid this trend, I am sure these institutional investors are very aware of that.
Some of those countries are also dealing with foreign interests buying up tons of real estate.
Thanks for this!
I think there's a good chunk of the populist left/right that's just incoherent on housing. It typically goes like this:
1. Homeownership is good, because it's the only way for middle class families to build wealth.
2. Blackrock buying homes is bad, because it raises housing prices, which makes it harder for middle class families to buy homes.
3. Therefore, to help middle class families, we should prevent Blackrock from buying homes, lowering prices.
BUT YOU CAN'T BUILD WEALTH IF HOUSING PRICES DROP!
Personally, I suspect a lot of this angst is coming from people that also want to be landlords. But as a renter, I don't care if I rent from an institution or from a small landlord. At least the institution doesn't act like I'm taking food away from his family when I request some repairs.
I'd be curious to know if Coven compared the interest rates charged to corporate property buyers. (If they use financing.) And also whether this is just another big bank grift to bailed out by taxpayers when/if the market turns.
I knew the answer until I read this article. Then suddenly the answer wasn't so obvious anymore. Good exercise in learning and changing. Thank you!
The 2 one sentence paragraphs in the middle have some glitches but even that was all good because it forced me to think about the intended meaning.
I’m curious why you wrote this piece. This isn’t a new phenomenon. And I would argue that it’s extremely bad for America. There’s no room to interpret this in any other way IMO.
“But when they (Institutions) buy a home, prices increase,” he told me. “This causes builders to build homes, and this causes small landlords to potentially exit the market.”
If you replace “institutions” with “the government” what do you get?
It’s not a coincidence that we have more regulations and fewer (less than zero) new banks since 2008’s GFC.
This is corruption at the highest levels playing out in front of our faces. If you want to dig deeper check out government backed “student loan asset backed securities.” SLABS. There’s a reason tuition is rising at breakneck speed, the value of education is plummeting and activism is the new opium for the masses.
It all plays in to the main theme of the world since the WEF and globalists decided they could “make our lives better” through less choice and personal accountability.