Posted on 07/03/2024 2:50:13 PM PDT by Jacquerie
WASHINGTON – If you rent a house when you would rather own, pin some of the blame on corporate landlords.
The 10 biggest institutional investors owned more than 430,000 single-family rental homes at the end of 2023, and they continue to acquire houses to rent out to middle-class families. Corporate landlords seek to dominate the neighborhoods they target, simultaneously reducing the inventory of houses to buy while expanding the stock of houses to rent.
Members of Congress have introduced bills to force the largest institutional investors to dramatically cut their holdings.
The United States suffers from a housing shortage of between 1.5 million and 5.5 million units, depending on whom you ask. Institutional investors benefit from the shortage because it pushes prices higher, making homeownership unaffordable for many. The median home resale price rose to a record $419,300 in May, according to the National Association of Realtors. Mortgage rates have remained above 6.5% since May 2023.
Consequently, it costs more to buy a starter home than to rent in the 50 largest metro areas, according to a Realtor.com report in March. According to Zillow, the median rent for a three-bedroom house was $2,200 in June. That's $32 less than the principal-and-interest payment on a median-price house at the average mortgage rate in May — after making a 20% down payment. But who has $83,860 for a 20% down payment on a $419,300 house? The combination of high prices and interest rates forces many would-be homeowners to rent.
Corporate landlords raise rent and charge ancillary fees because they can. "These institutions have outsized power in our housing market, and that influence is growing," said U.S. Sen. Jeff Merkley, D-Oregon, in an email. "By 2030, Wall Street could control 40% of U.S. single-family rental homes."
"We have an incredibly effective system for acquiring homes one at a time," Progress's then-CEO, Chaz Mueller, said. Every 15 minutes, the company got an update of newly listed homes in its markets. When an algorithm identified a house that met its criteria, the company's acquisition team made an offer "within a couple of hours of the home going on the market. So we're able to analyze it very quickly, make an offer. Our offers are all cash, very flexible closing, basically whenever the seller wants to move out," Mueller said.
One of the greatest things Theodore Roosevelt did when he was President was to bust monopolies.
Simple, the more residential properties you own the more taxes you pay. Own 100 houses go bankrupt.
“ You will own nothing and you will be happy”. The left is determined to destroy the middle-class in the USA
Once corporate landlords buy a house, it will always be for rent. It will very rarely go up for sale. The quality of families that rent often lowers the value of the rest of the homes. YMMV
Just half of one percent of the single family homes in the US. And just one-third of one percent of all US occupied dwelling units.
This conspiracy theory dies hard. And this is one of the dumbest posts here in a long time.
If a corporation wants to live in a house, then they should be allowed to buy a house. But if they don’t plan on living there, then allow REAL FAMILIES to by that house.
SOOOOOO-—WHICH GROUP KEEPS CALLING ME & ASKING IF I WANT TO SELL MY HOUSE?
I HAVE YET TO GET A CALLER WHO LEARNED ENGLISH AS HIS FIRST LANGUAGE....
Deep State doesn’t like competition.
Enjoy your Sec 8 crime and drug infested hovels.
In my neck of the woods the real families can’t afford the property taxes.
The problem is that the corporate owners focus on specific markets and have helped to cause scarcity in those markets.
House prices are determined at the margin. Corporate owners could own 1% of the homes in a market but be 20% of the buyers which drives up prices substantially.
In addition these corporate buyers are “cash buyers” which means they do not have to convince a mortgage lender that the value of the proposed purchase is reasonable and not inflated.
Wouldn’t that logic apply to all landlords, corporate or otherwise?
Happening in my neighborhood..
You wouldn’t believe how many offers I get on my home and properties. It’s ridiculous.
Calls, texts, snail mail.
If I do not get at least four a day, my day is shot. I would never sell to a corporate company after living in my neighborhood for over 25 years.
You wouldn’t believe how many offers I get on my home and properties. It’s ridiculous.
Calls, texts, snail mail.
Fighting now in Congress to send a middle-class income and property taxation cap constitutional amendments to the states would add the electors of several deep blue states to Trump’s total and make Congress turn deep red come November.
[perhaps]
Federal income taxation shall be capped as follows, on personal income:
below the average yearly apartment rent in the District of Columbia, 10%,
below the median federal full-time civilian employee compensation amount, 22%,
below the average employee compensation of the 100,000 best paid federal full-time civilian employees, 30%,
below the average employee compensation of the 10,000 best paid federal full-time civilian employees, 40%.
[Note: All percentages to include employee FICA. They would not fully include self-employment tax, so people that pay SE tax might choose to voluntarily invest in the SS system or otherwise arrange for their own retirement funding.]
[Anything that the IRS would as of January 1, 2024 legally be able to collect income tax on if provided to any person would be considered compensation.]
Taxation and levies on any residential property of less than 2799 square feet of finished space shall be no higher the 2019 dollar amounts on the property, or for a newer or since resold property what a similar property in the same area would have been taxed at for 2019 if it lacked owner specific tax breaks, increased by 3% per calendar year since 2019 and by any percentage increase to its finished living space.
Don’t overpay for waterfront property:
https://www.crystal-lagoons.com/
Solar panels are getting so cheap the rich could microclimate many new exclusive areas in the USA - resistance heating to warm - AC to remove humidity.
“Don’t overpay for waterfront property:
https://www.crystal-lagoons.com/
Solar panels are getting so cheap the rich could microclimate many new exclusive areas in the USA - resistance heating to warm - AC to remove humidity.”
LOL.. Have I got some Salto Sea property to sell you !!
Try reading the article.
Here’s the logic: bigger gooses tend to have more fle$h.
It’s like shaking the fruit off a tree. Bigger fruit trees tend to have more fruit on them.
Lawyers see total capitalization. Large companies get demonized. Call it corrupting the jury pool, if you dare.
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