Trillion dollar private equity firms, like Blackrock, which basically invest for Wall Street and corporate conglomerate rich people, are buying up whole neighborhoods of single family homes, as well as homes wherever they can find them in good, safe neighborhoods. So what do they do then? They use these homes as long term investments for their privileged, rich investors then turn the homes into rentals. This creates the current housing shortage we face today, forcing the homes that are left on the market to go into bidding wars from prospective home buyers consequently inflating home prices helping to create the next speculative, real estate ‘bubble’/crisis of overvalued property prices.
When the next speculative real estate ‘bubble’ bursts, just like in the 2008 real estate crash, the privileged, rich investors will be bailed out by the U.S. government using taxpayers’ tax dollars provided by the poor folks that will be losing their homes in the crash. When people get ‘priced out’ of being able to afford to buy homes anymore in good, safe neighborhoods, this is when the crash in real estate prices will start to show its ugly head.
Meanwhile, the new homes that are being built will come with much higher price tags due to supply and demand brought on by Wall Street, not to mention the higher costs being forced on home builders in the form of higher employee wages, costlier building materials and the higher costs imposed on home builders, and future home owners, to meet the U.S. government’s newer and latest standard building codes that home builders will have to meet for climate change and energy requirements.
Selfish, destructive Wall Street investor greed is ruining the American dream of middle class home ownership. Home ownership builds generational wealth and provides home owners with a stake in society which is the foundation of the middle class. However, what is best for Wall Street’s rich investors is to force prospective home owners into renting instead of owning homes which creates a mass of indebted surfs easier to manage and control.
Wall Street private equity firms are plundering the future with permanent capital robbing the middle class of that bedrock of the American dream of owning your own home so you will own nothing…and you will be happy about it because you have no other choice.
Due to current high home prices, 40% of home renters today never expect to even own a home, and like all prices for most everything nowadays, including rents, prices and rents are only expected to continue to keep rising.
SUPPLEMENTAL SOURCE: PEDRO GONAZLEZ, EDITOR/WRITER FOR CHRONICLES: A MAGAZINE OF AMERICAN CULTURE JUNE 2021