We wonder why housing costs have soared? Not only is the Federal Reserve buying mortgage backed securities (home loans) which suppresses interest rates, we have Wall Street buying up houses as an investment.
Blackstone Group Inc. has agreed to buy a company that buys and rents single-family homes in a $6 billion deal, a sign Wall Street believes the U.S. housing market is going to stay hot… The investment firm confirmed Tuesday that it has reached a deal to acquire Home Partners of America Inc., which owns more than 17,000 houses throughout the U.S. Home Partners buys homes, rents them out…
Wall Street Journal
This is also limiting the supply of available homes for sale which also drives up prices.
To me, it seems ethically wrong for a billion-dollar corporation to purchase American homes and rent them out. Homes are for people to live in, raise their families, and hopefully build their own wealth over time. Yet, we see this wealth continues to be consolidated into the hands of the few.
Remember this one?
It has already begun.