Buying a home – often seen as the cornerstone of the American dream – is increasingly difficult to buy in America.first But there are other factors at play, including record low inventories2 and competition from investors, who buy homes with cash about 75% of the time.3
A large number of investors – including Wall Street – have entered the housing market during the pandemic, attracted by low mortgage rates, easy access to loans and driving home prices. .4
It is clear that not only investors, including bigwigs like Blackstone and iBuyers – which offer instant cash online – have entered the housing market during the pandemic, but participation Their property can be instrumental in raising prices and making it more difficult for the average American to achieve home ownership.5
Major investors have doubled their home buying rate
Investors from small to large scale – spread throughout the space of small and medium stores for Wall Street giants to rent a few apartments for vacation with the number of hundreds or thousands of apartments. Most investor home purchases (74%) in September 2021 were made by people with portfolios of less than 100 properties,6 but the gap is narrowing. Mega investors have greatly expanded their reach in recent months, thus they have had a great impact on the market.
According to Daniel McCue, a senior research associate at the Harvard Center for Integrated Housing Research, “In addition to price pressures, investors have aggressively moved into the single-family market over the past year, buying affordable homes for rent. or upgrade for resale. “7 In “National Housing 2022,” a report by Harvard University’s Center for Integrated Housing Research, further notes:8
“CoreLogic reported that the share of single-family investors sold in the first quarter of 2022 hit 28%, much higher than the 19% share a year earlier and the 16% average in the first quarter of 2022. the period 2017–2019. It’s no surprise that investors are focused on markets with fast-growing home prices…”
However, investors with large portfolios are increasingly making their mark. They nearly doubled their home-buying rate from September 2020 to September 2021, reducing the available housing supply – especially in lower-priced markets – and pushing prices even higher. According to the report:9
“Investors have moved rapidly into the single-family market since the pandemic began… Investors with large portfolios (at least 100 properties) have driven much of the increase. growth, nearly doubling the rate of investor purchases from 14% in September 2020 to 26%. in September 2021.
By acquiring single-family homes, investors have reduced an already limited supply of capital for potential owners, especially first-time and middle-income buyers. Indeed, investors are more likely to target lower priced properties.
In September 2021, investors bought 29% of the homes sold in the bottom third by metro sales, compared with 23% of the homes sold in the third. Top. Investor-owned homes are often converted from owner-occupied units to rentals or upgraded for resale at a higher price.”
Blackstone is back in the home buying business
Blackstone, a giant private equity firm, is deeply ingrained in the American real estate sector. Blackstone is the largest real estate company in the US as well as the largest real estate company worldwide, with a $325 billion portfolio.ten In 2012, Blackstone founded Invitation Homes and spent billions of dollars buying foreclosures and foreclosures and turning them into single-family rentals.
With about 80,000 homes in its portfolio, Invitation Homes has been criticized for evicting tenants, hiking rentals, delaying repairs and charging excessive fees.11 At its peak, Blackstone spent more than $100 million a week buying properties.twelfth
The company went public in 2017, raising more than $1.5 billion from an initial stock sale, but Blackstone sold the rest of the company’s shares in 2019, raising about $7 billion. la.13,14 However, it has re-entered the market during the pandemic, with a $300 million minority investment in Tricon Civil, which owns more than 30,000 single- and multi-family rental homes across the globe. throughout the United States and Canada.15
In June 2021, Blackstone agreed to buy Home Partners of America, a single-family rental company, and its more than 17,000 homes, for $6 billion.16
BlackRock threatens middle-class home ownership
BlackRock, one of the largest wealth management companies, is another major player buying homes in the US; they also control the media and Big Pharma, and have ties to Blackstone. Blackstone co-founder Steve Schwarzman said in an interview on Squawk Box that he and BlackRock founder and CEO Larry Fink started the business together.
“We put the initial capital,” he said. BlackRock used to be called Blackstone Financial, but Fink went on his own. Schwarzman said, “Larry and I were sitting down and he said, ‘What do you think about having a last name with ‘black’ in it,'”17 and BlackRock was born.
In the first quarter of 2021, 15% of US homes sold were purchased by corporate investors18 – compete with the American middle class for a home. There’s really no competition, however, since the average American has virtually no chance of winning a home against an investment firm, which can pay 20% to 50% off the asking price,19 in cash, it is sometimes possible to take entire neighborhoods at once so they can turn them into rentals.20
“Investors chasing returns are jostling for single-family homes, competing with the average American and driving prices up,” warned The Wall Street Journal during a 2021 expo.21 The question is: Why are institutional investors and BlackRock, the $5.7 trillion asset management company,22 Interested in overpaying for modest, single-family homes?
To understand the answer, you must look at BlackRock’s partners, including the World Economic Forum (WEF),23 and their extreme political and financial influence. In a Twitter thread posted by user Culturalhusbandry, it is noted:24,25
“Black Rock, Vanguard and State Street control $20 trillion in assets. Blackrock alone has a surplus of 10 billion per year. That means with a 5-20% reduction, they can get a mortgage of 130-170 thousand homes per year. Or they can buy 30,000 houses a year right away. Just Blackrock.
… Now imagine every major institute is doing this, because they are. It can be such a quick sweep action that 30yrs can exceed it. They can complete feudalism in 15 years. “
If the average American was pushed out of the housing market, and most existing housing was owned by corporations and investment companies, you would become their landlord as your homeowner. me. This fulfills part of the Great Reset’s “new normal” proposition – the part where you’ll own nothing and be happy. This is not a conspiracy theory; it is part of the WEF 2030 agenda.26
BlackRock’s Aladdin ‘Own Everything’
Aladdin, which stands for Network of Assets, Liability, Debt and Derivative Investments, is BlackRock’s technology platform, which controls $21 trillion in the global economy – more than $20 trillion in US GDP or 15 trillion USD of EU GDP27
In a word, if you collect every last penny from 7.6 billion people in the world, you will accumulate about 5 trillion USD, significantly less than the 6.3 trillion USD in wealth. BlackRock is managing. As reported by The New Statesman:28
“The total value of assets under management by BlackRock is $6.3 trillion. But Aladdin also does a risk analysis of properties managed by his clients, which are valued at more than double that amount.
Altogether, Aladdin influences the management of about 10% of the world’s financial assets, or about $20 trillion. Over 25 years, it has evolved into a system that is directly or indirectly responsible for more than four times the value of all the currencies in the world.”
This “robot” directs the operations of the US Federal Reserve, nearly every major bank and Wall Street hedge fund, and over 17,000 traders. It also controls half of the exchange-traded funds (ETFs), 17% of the bond market, 10% of the stock market, and executes 250,000 trades daily.29
Its artificial intelligence and powerful algorithms are so instrumental that Anthony Malloy, CEO of New York Life Investors, a $238 billion asset manager, told Forbes: “Aladdin is like oxygen. . Without it, we wouldn’t be able to function.”30 Even when it comes to government regulation, BlackRock is there.
The US government has appointed Brian Christopher Deese as the 13th director of the National Economic Council – he previously served as global head of sustainable investing at BlackRock. Adewale Adeyemo, a former BlackRock chief of staff, was also named the highest-ranking official at the Treasury Department.thirty first “This means that BlackRock is now treasury as well as treasury advisor,” noted futurist and social entrepreneur Roger James Hamilton.32
Man’s freedom is also explained,33 “Bloomberg calls BlackRock the ‘Fourth Branch of Government,’ because it is the only private agency that works closely with central banks. BlackRock lends money to the central bank, but it is also an advisor. It also develops the software that the central bank uses. “
In 2019, Blackrock expanded Aladdin’s reach even further by acquiring eFront, a private market data company, to gain a “whole portfolio view”.34 This leaves private property that was once a blind spot for Aladdin firmly under the thumb – including data on the global real estate market, data that BlackRock used to buy a single-family home over the years. next.
“I don’t care about conspiracy theories, but even a skeptic with wide eyes can see the signs. We are at a point where nobody can compete without Aladdin,” Hamilton said, adding:35
“This story is far from over. Aladdin has reached its peak when a robot controls more wealth than any person or country. But as Aladdin’s AI capabilities continue to grow, and with its control adding a trillion to $2 trillion in new assets each year, it seems inevitable that Wall Street’s secret weapon could end up owning everything and we would own nothing.”
