BlackRock, Private Equity, and the Housing Market

The narrative thread about Blackrock and other private equity firms buying up single-family real estate has been in the marketplace for quite some time now. Indeed, whole neighborhoods are being built for people to rent, not own, from private equity. Housing markets across the country have been upturned by private equity all-cash offers, beating out regular people with a mortgage who need an inspection and approvals before their offer can go through. This has pressed home prices upwards in many markets and have cut out many regular people altogether. We are slowly becoming a nation of renters, and while that might help the US economy overall, owning your own home has become the biggest symbol of the American dream and contributes mightily to the nation’s GDP.

In this video, we learn how private equity plans to control the housing market by 2030 and why their relatively small ownership stake in the economy is going to radically change the housing market for decades. There’s that phrase, “you’ll own nothing and be happy” seems to be coming truer by the day.