What Happens When Hedge Funds Buy Up Neighborhoods

The Federalist ^ | JUNE 11, 2021 | Joy Pullmann

[EEGator]

We are not a free market by any stretch of the imagination.

[Paladin2]

Hey, Comrade, are you down with the Revolution or not?

[Albion Wilde]

bump

[Secret Agent Man]

well it hasn’t helped the usa so far

reaamerica used to be about an average of 100, but with the last influxes the last few decades, its about 98 now...

[noiseman]

…and I’d say residential rental properties might be the dumbest investment on the planet for a company like BlackRock.

This isn’t about investment return any more than the masks were about health. It’s all about control.

[JonPreston]

Isn’t Blackrock the military contractor ?

[SauronOfMordor]

I’m reminded of an old technique called “block busting”, where real estate prices were artificially collapsed by making owners afraid that blacks were moving in and “turning” the neighborhood.

https://www.legalmatch.com/law-library/article/blockbusting.html

Investors would then buy cheap, and sell higher later.

I can see these investors flooding neighborhoods with Section 8 tenants, making people move, buying up houses cheap, then getting rid of the Section 8s before selling.

[Bonemaker]

"What Happens When Hedge Funds Buy Up Neighborhoods..."

If they turn them into Section 8.

[crosdaddy]

Correct, BlackRock will be one of the recipients of the Great Reset, coved lockdowns and suspension of having to pay rent was just the lead off to the Great Reset.

[PAR35]

Just part of the plot by the oligarchs to destroy the middle class.

[cgbg]

I can see these investors flooding neighborhoods with Section 8 tenants, making people move

It won't require a "flood". It probably would only take 10% Section 8 types to turn a desirable neighborhood into an undesirable one.

Noise travels a long way, and unsightly front yards are kinda obvious when you are driving by...add a handful of petty crimes and the neighborhood is done...

[Jane Long]

Future of suburbs, if these guys get their way.

[DannyTN]

If it is really an issue that market dynamics won't cure then there are several ways you could influence the market behavior.

• Tax rent income more.
• Tax capital gains on second homes more. Would probably have to limit claiming a house as primary more than once in x years if you own more than one house.
• Tax capital gains on residential real estate held by funds, corporate entities and businesses more.
• Give fewer tax breaks for rental properties.
• Give a greater tax break for owning your primary home.
• Stop illegal immigration - reduces housing demand.
• Limit legal immigration - reduces housing demand.
• Increase incentives and change building codes to allow more small house, tiny house, and manufactured house communities. - Increases housing supply, reduces homelessness, reduces demand for building materials.
• Provide incentives to develop robotic construction. Could hurt construction industry jobs, but would ultimately provide more housing and larger housing at cheaper prices. And increases the robotic industry.
• Exile anyone caught in election fraud or promoting critical race theory to Libya.
• Use Elon Musk's Boring machines to build underground communities of mole people.
• Send large numbers of people to Mars reducing demand.

[mylife]

they take all the risk..

[Still Thinking]

Sounds like a bubble in the making (plus just general bad policy).

[DIRTYSECRET]

Section 8 turns people into good tenants-skin in the game. They pay a small share. They should move before uncle sam subsidizes too much. Landlords love the guaranteed payment. The rest of HUD should disappear.

[DannyTN]

QUARTERLY RESIDENTIAL VACANCIES AND HOMEOWNERSHIP, FIRST QUARTER 2021 - Census Bureau PDF

Look at the homeownership rate chart above Table 4, on page 5.

[cableguymn]

Yup buy the block and convert the run down outdated to section 8 and regular rental the nice ones.

[Jane Long]

This is what happened in my aunt’s (formerly) nice neighborhood.....

The subdivision was re-zoned to a lower academic HS, that is in a lower economic area.

Parents who could, quickly sold their homes and bought in other areas.

The value of the homes, in her neighborhood, went down, significantly, within the year.

Homes that were about to foreclose, were snapped up (maybe by state, or county, or some type of non-profit?) and turned into halfway houses (homes for runaways, etc) and Sect 8 homes.

This happened during 0bama’s reign.

What once was a great neighborhood/subdivision is no longer.

Why Blackrock and other entities are buying up these homes, OVER value, is troubling, for sure.

[Salgak]

That’s a rather dark topic. . .