Posted on 08/09/2025 1:02:04 PM PDT by Red6
Background: There are forces that create major shifts, and in the last years there has been a lot of talk about how "You'll own nothing and you'll be happy."
https://en.wikipedia.org/wiki/You%27ll_own_nothing_and_be_happy
That is what I am seeing in the real estate sector.
Does anybody have any solid sources on the topic that puts things together (an analytical piece that shows where policy changes are driving what is happening), concerning who actually owns the real estate in the US?
It appears, but I have no solid sources, that real estate is getting bought up by commercial investors, and often is longer for sale, but rather becomes rental property, and this may be the result of national level policy changes post 2008 which favor this.
Anyone have any information?
Not sure how/where to post this, if it needs to be somewhere else, please move it.
https://bloustein.rutgers.edu/who-really-owns-the-u-s-housing-market-the-complete-roadmap/
https://www.minneapolisfed.org/article/2021/new-property-data-tool-reveals-patterns-of-investor-ownership-in-the-twin-cities-area
https://jpia.princeton.edu/news/rise-institutional-investors-us-rental-housing-market
https://www.minneapolisfed.org/article/2021/understanding-the-rise-of-investor-owned-homes
a lot of banks own a huge portion of the market. Then there are the baby boomers who are living to be over 100 years old and so two generations are waiting for their houses to turn over, kinda like when you go to a restaurant and you’re waiting for a table and the people spend four hours eating. Then, of course, the people that own the homes have unrealistic expectations of how much money they’re going to make. They will have to get desperate until they start letting go. I just saw someone with a portable barbecue. They pushed it in front of their house with a for sale sign and they wanted $2100. I would probably pay less than 100 for it. I see boats and Sea-Doo’s, with horrible price tags and people‘s front yards. And used cars with crazy prices on them. But they’re always still there. No one is buying them so it’s going to be a while, but I think it’ll eventually break.
Tons of moneys been flooding in from communist China. For years. It appears to be 30
Plus percent in some areas. Results in higher housing prices
The Saudi Royal family owns more of London than the royal family. (by a huge margin)
If we had a portable grill that didn’t work, we would put in in front of our house with a “For Sale - $250 or best offer” sign, and could count on it being stolen within 24 hours. Sort of free junk hauling. And we live in a fairly low-crime area.
But to your point..... TOO MANY basic residential homes in our area are being bought up by corporations of all sizes and types, then turned into rentals. I am hoping this turns around somewhat, if the scarcity in housing lets up (maybe if millions are deported, some spaces will become available). It is sad that young buyers are not able to compete against the corporate buyers, but is also sad that perfectly nice homes (many would be “starters” or first homes for young families) are turned into rentals. Renters just cannot have the same feeling of trying to create a community; they can just move when the lease comes up - no investment.
There's plenty of solid evidence out there. The international banksters in New York are behind it. Blackstone owns billions of dollars worth of residential property. Third largest owner of residential property in the US; they bought (or are buying) a competitor for $3.5 billion. They bought another competitor for $10 billion. Pocket change for them. Here's one story https://www.cnbc.com/2025/07/16/blackstone-is-buying-rental-homes-again-heres-why.html
A report from early last year says that 32 "institutional investors" owned 450,000 single family homes. The number has gone up since then. Pretium owned 97,000 single family homes as of early this year.
RE became overheated post covid as rents and prices skyrocketed. This will revert to mean, banks and investors will bail and the market will correct. If I were a middle aged person with good income, I would be taking stock profits to strike when the market corrects. RE income is a good retirement plan.
Chinese have some of the blame, but the influx of techie Californians has distorted the market around here. So between the Californians, the Indians, the Chinese and the international bankers, real Americans can’t afford to buy houses in this area.
oh sure, did you see the article where some international buyers are buying up huge parcels of land in Malibu, the oceanfront property that got burned in the fires. They are just quietly buying up the entire area. I guess it’s kind of like a scalper buying up all the tickets at a concert and then selling you a seat for $4000. i’ve been saving up some money so I hope there’s a readjustment of sorts and these prices go down so I can jump on something maybe as a rental property or a vacation property, or maybe just a big tract of land to hold onto as an investment.
Some things to consider:
In the current real estate market, there is slower appreciation compared to past markets. This works against a buy and sell quick profit strategy. In contrast, renting allows investors to benefit from a slow but steady appreciation over time. Mortgage rates are higher than the not too distant past. This is driving people to rent rather than buy. This demand to rent trend help drive investors toward renting property vs buy & sell/flip. Another attraction for those who rent property is that landlords can take advantage of various tax deductions that rental properties afford.
IIRC I read on a prior FR thread that most of the “corporate” home buyers are mom and pop investors who have only a handful of investment properties. Think self-made millionaires ($1 or $2 million) who’d rather their investment growth / retirement plan be real estate instead of stocks and mutual funds.
“Then there are the baby boomers who are living to be over 100 years old and so two generations are waiting for their houses to turn over, kinda like when you go to a restaurant and you’re waiting for a table and the people spend four hours eating. Then, of course, the people that own the homes have unrealistic expectations of how much money they’re going to make.”
It is a certainty that putting money in the bank will be a losing proposition to inflation - 1% to 3% a year.
Over 20 years that’s 20% to 60% loss to inflation.
Unless you can get a 20% to 60% premium for your house, you should keep it until you die.
A couple of years ago, I read (maybe in Forbes?) that BlackRock, Vanguard and State Street. have been buying individual properties and entire blocks with the intent of turning them into rentals.
where I work, there is this big giant mansion of a house, couple stories, tall, beautiful. I’m sure it’s worth probably a couple million.- there is this old man who comes out every now and then to put out his garbage cans or get his mail and he looks about 120 years old. He looks like Yoda. He lives there by himself, and I’m like,—- “bro, get off the stage. Let go. “
I don’t know, but I do know that the traditional busy spring and summer market did not materialize in the DFW market, where one of my daughters is an agent. I don’t think she’s sold a house since February. Fortunately for her, she sold several houses before that.
Even 25+ years ago, I would advise most friends and peers who were ambivalent about home ownership that it didn’t make sense to own a home unless one or both of the following were applicable: (1) they had children in the public school system, and/or (2) they ran a business out of the home.
There have always been commercial companies buying up property and then renting it out. A way to make a living I suppose. The amount of rental conversions depends on the area. I don’t see it as much in my area.
I see young people buying homes and I also still see homes being bought and sold. Mortgage rates are high but still half of what I faced with my first home.
Blackstone, not BlackRock, is the one buying up single family homes.
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