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Editor’s Note: The following editorial is from author Carol Ross’ new book,you will own nothing](Broadside Books (July 18, 2023)).
Only ten years ago you Home loan from a major financial companyBut you don’t have to compete with them or the companies they fund to buy single-family homes.
But today the elite are borrowing the American Dream from you.
Yes, BlackRock, the world’s largest asset manager and provider of ESG philosophies, and some of the financial giants, including Blackstone, JPMorgan Chase, Goldman Sachs, and Capital One, among others, have poured hundreds of millions of dollars into sponsorship firms that buy and rent single-family homes to middle- and working-class Americans.
Rising prices push home affordability to lowest level since 2007
Owning a home was a defining symbol of the American Dream. And for good reason. Because it is an important asset for creating wealth. If you want people to build more wealth, a key way to do that would be to make it easier for them to own homes.
But the US and global elites don’t want that at all.
That’s why it’s no surprise that a recent report from real estate broker Redfin showed. affordable housing It has hit a historic low in the United States, with less than a quarter of homes on the list in 2022 considered affordable by the typical American homebuyer.
There are companies across the United States that buy tens of thousands of single-family properties for the express purpose of renting the American Dream back to you, giving them the opportunity to create wealth while you own nothing.
It’s not just the United States. In the UK, Halifax, a leading UK mortgage lender, said property was out of reach for the average buyer in about 80% of cities. In the Netherlands, it was recently reported that a first-time buyer has sold for more than 96% of his price on the market.
“You will own nothing…and you will be happy,” is the prophecy.
As far as the truth goes, the second half is unquestionable, but the rich and well-connected are working hard on the first half. Hoarding assets and renting them out to you seems to be a big part of their plan.
BlackRock’s Larry Fink on why ESG is ‘weaponized by left and right’
Not only in the United States, but around the world, owning a home helps individuals and families build wealth.Every of the Federal Reserve According to the 2019 Consumer Finance Survey, a home (aka primary residence) was the largest asset owned by value across all households and across all ethnic groups. US households own more home wealth than stocks, mutual funds, and retirement accounts (including IRAs, Keogh plans, Thrift Savings Plans, and 401K(k) accounts).
But the financial, business and political elite, many of whom own one or more mansions themselves, oversee the epic transfer of wealth from Main Street to the already wealthy and well-connected, which has accelerated at key points over the past decade and a half.
During the Great Recession and the financial crisis, ordinary Americans were punished while a circle of well-connected people benefited.
Both individuals and financial institutions took on too much risk on housing, but with very different results. Individuals lost their homes, but financial institutions received relief.
Wealthy and well-connected people benefited in many ways during the crisis. Some received direct relief. Many were given access to cheap capital. Financial institutions could foreclose on homes and seize personal wealth. These homes went into the hands of well-capitalized buyers who bought up these properties at bargain prices.
Market experts warn Fed will ‘crush’ U.S. housing in ‘decade-long aftermath’ of rate hikes
On the other hand, as The New York Times Magazine reported, “[f]Between 2007 and 2011, 4.7 million households lost their homes to foreclosures and another 1 million lost their homes to short sales. Private equity firms have developed new ways to secure credit, allowing them to leverage their shares to acquire a staggering number of homes. ”
Housing was then underbuilt, creating an undersupplied market. and the investor The Fed’s ‘easy money’ policy It has created a new market of competing with you to own your home.
Single-family homes, which have been purchased for decades by individuals and families as a way to build wealth across generations, have been bought on a large scale by large corporations for the first time.
This is a completely new phenomenon. Meaningful institutional money in single-family rentals just didn’t exist a decade ago.
Nearly Half of Americans Say Income Has Not Keeped Up With Inflation: Transnion
There are now companies that buy tens of thousands of single-family properties across the United States, giving them the opportunity to create wealth while you own nothing, for the express purpose of renting the American Dream back to you.
They are backed by the financial elite, many of whom are the same people who hustle in Davos at the World Economic Forum’s annual gathering.
The homebuyers of these companies are not only driving up prices, they are also powerful competitors in other ways. They have the financial ability to make an all-cash offer without relying on funds. Mortgage Approval As the typical homebuyer does. These companies often don’t even check the properties. They don’t want to live there.
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In the fourth quarter of 2021 alone, businesses purchased 80,000 homes. This represents approximately 18% of all single-family homes sold in the quarter. While not all of these corporate buyers were large corporations (some were small landlords with corporations), this is a staggering number, an increase of over 24,000 units from the same period last year.
And in 2022, investors will have purchased an estimated 22% of all US homes, according to CoreLogic data. This equates to more than his 1 in 5 homes purchased by investors.
The investor owns something, you own nothing, and you collect rent from the difference.
Enabled by Fed and government policies, this practice directly targets the middle and working classes. It hurts young Americans who try to own something. In fact, millennials are making more money than their peers after adjusting for inflation, but creating less wealth and less desire to buy a home or part of the American Dream.
The investor owns something, you own nothing, and you collect rent from the difference.
Redfin’s deputy chief economist Taylor Marr told The Hill that “housing affordability is at an all-time low, which is widening the wealth gap, especially between generations.”
This is the one-two punch of a policy-created asset bubble and shifting wealth-creation opportunities to the already wealthy. ordinary Americans are Dispossessed Pricingand they are not happy.
Elites want to be on top, no matter what the outcome. So they’ve now put up a white picket fence to keep you from achieving the American Dream.
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Whether the “you will own nothing” prediction is in line with the expectations of the New Financial World Order or a directive to help build the New Financial World Order is of little importance. Being a permanent renter rather than a homeowner is a serious insult to personal and generational wealth creation.
The elite don’t stay at home. They buy up land and water rights. If the elite owns everything and you own nothing, in the end they will effectively own you, so you must strive to own everything you can.
Click here to read more about Carol Ross
