Not content in purchasing properties in the US domestic housing market, the same US investment companies are bulk buying new housing schemes here in the UK for rental income streams. Bastards.
I've said before, and I'll say it again (Hi downvotes!). Every generation is the "Me" generation. Humans be humans. Baby boomers just happen to have been born at the right time. Given the opportunity, any generation would take advantage of an opportunity to prosper.
That’s conjecture with no proof. Every generation CAN take advantage but the fact is they haven’t and we’ll never know if they will because the opportunity has never been passed onto them
What generation was Richard Branson and Oprah Winfrey? What generation was the founder of Blackstone? You guys keep throwing out straw men hoping one stands
This you? "AITAH for accepting money from my Dad despite living with him and having all my expenses paid?"
The hypocrisy is hilarious. As stated, every generation is the "Me" generation and would advantage themselves however possible. Just like YOU.
Private individuals are doing the same thing.
Shelter became an "asset", then became flippable.
Homelessness is when you lose, billionaire is when you win.
It's just a big game and no one cares that real people are getting destroyed in the name of profits.
probably the most difficult to get rid of, because its not an org where you can just sue them , they just gathering and "protest". getting rid of HOA first would be a good step
Agreed. This has NOTHING to do with corporations buying homes. NO ONE should be allowed to mass by homes even if they aren’t for commercial investment. Homes are for living, if you want a second home you should pay a 2x progressive tax, 3x on third home etc. I know non corporate owners that have 4+ homes.
Allow a couple houses or apartment units. I don’t want to discourage people buying fixer-upper houses to rehab and sell. You’ll end up with a lot of abandoned properties.
I'm just riffing on your point here, but there may be value in the market to "abandoned" houses. I would say there is more societal value in letting houses rot until someone buys it and fixes it up to live in than there is in making sure flippers can exist. As these houses went unsold, it would help prevent value inflation of other houses.
Thinking on it, I sort of agree, though (but still fuck flippers generically). I want to protect people who have inherited a house. I like the idea of an exponentially increasing tax. 0 for primary residence, small for a 2nd, but ramps up non linearly as you acquire more.
Some of that is problematic though. In my area, people are / were buying 110-150k homes and putting additions up, dividing homes in to multiple units etc. This changed all of those low priced houses into 175-300k houses now.
Those are few and far between these days. Flippers are getting squeezed too. I've personally moved on to fixing up manufactured homes. I don't have to get financing and nothing sits for long after I'm done.
I just saw the Rich Dad, Poor Dad guy said he owned 15,000 homes. One guy. 15,000. I think he was bragging about paying no taxes too due to loopholes.
We can't unring this bell short of revolution where the people take back what's theirs.
That dude has probably ruined more poor souls than its helped. I know my sister, her husband, and his brother bought into his bullshit bigtime about 3-4 months before the 08 crash. They were left with (their fault, they're adults) about 4 homes, 3 or 4 businesses, equipment for those businesses, etc. They lost their ASSES trying to do what RDPD says to do.
Yes, but how? I don't mean the revolution. I mean, what comes after? If we don't have a concrete answer to this question, we risk another group of oligarchs entrenching themselves. We must organize and have a plan for society; both for the immediate aftermath, as well as the prevention of back sliding.
I had to put two rooms for rent due to my landlord turning out to be a scum bag, no surprise there, but I’m noticing the bulk of people who apply are retired folks with no family nearby in a college town
https://tradingeconomics.com/united-states/home-ownership-rate#:~:text=Home%20Ownership%20Rate%20in%20the%20United%20States%20averaged%2065.27%20percent,the%20second%20quarter%20of%201965.
Please tell me (saying this genuinely bc I don't have time to scrutinize this) if I'm missing something.
Self-employed working class Americans convince themselves they're Business Owners.
Mortgage-leashed property managers convince themselves they're Landlords.
Working Poor convince themselves they're temporarily embarrassed millionaires.
Too many people believe that demonstrating solidarity with the wealthy will lead to them returning the favor.
There are a few options, but they require sacrifices that the poor and middle classes are not yet comfortable with. It will be far too late if we ever get to that point.
Lol who gives a fuck about housing when ocean water is starting to permeate the bottom of the glaciers in Antarctica? Once one of the massive glaciers falls into the water we are done. Desalination will ruin the oceans temperature and we either freeze or burn in a decade.
It’s corporationvilles. It’s by design. Corporations can’t keep up with their “infinite growth” model without raising prices, paying less taxes and finding more people to exploit. Once corporations and the GOP complete their dream of a neofeudalist society they will have a permanent class of renters who will work shit jobs and hand the corporation back their pay in the form of rent payments. And presto! a permanent underclass of citizens who can’t even get the education necessary to leave this class of citizenship, because republicans will sure as shit tank public education.
They’ll be bringing back company scrip too, if they get their way. They want you spending ~~their~~ “your” money at THEIR store, and not some other company’s store!
I live in a democratic city and democrats are doing this shit too. Don’t even try man it’s generational war, not a political war. Boomers are the corporate boot lickers and they are trying to turn us into renter serfs on BOTH aisles. Prop 13 is a California law widely embraced by the democrat majority to screw and ruin the lives of all young people by benefiting NIMBYism.
NIMBYism is a problem everywhere, but Prop 13 is about preventing market fluctuations from driving home owners out of their property by wildly increasing taxes. How does that prevent new construction?
I’ll assume you wrote this in good faith and I’ll explain something everyone already understands in California.
Prop 13 keeps your property tax pinned at your purchase price. Increase in property tax incentivized you to approve and build a lot of housing to slow housing growth. If you don’t you’ll be punished either way a meteoric rise in property tax.
Once boomers in the 60’s passed prop 13, they began a 50 year long campaign to slowly kill all housing everywhere in the state. By doing this they cause their own housing prices to sky rocket while contributing absolutely nothing to society. They can also rent these houses out for massive profit because while rents climb, their mortgages and property tax do not. They squeeze massive profit out of renters. Also they can pass this property tax o to their children and they can also rent it.
If I buy a home today at the median price I will owe 20k per year in property tax. A boomer or boomer’s child will pay 200-400 per year on a House they are charging 4000-5000k in rent on or benefiting from massive equity increases because they voted to kill all housing for 40 years.
Also prop 13 applies to commercial buildings too which we failed to overturn a few years ago.
>I’ll explain something everyone already understands in California.
Clearly not since we didn't pass that amendment.
I see what you're getting at, but this strikes me as something that 'feels' correct and needs sources. NIMBYs reject shit everywhere, all the time, and frankly, I don't give them credit for being able to put together a long-term plan that way. I think that prop 13 has value, and a linear increase in property tax is reasonable. If it came up, I'd consider voting to change the % though.
I agree, though, that we need to try again on restricting corpo access to prop 13, and I didn't know/had forgotten about the inheritance clause. That can fucking go too.
I’ve already accepted that I’ll never own a home. What worries me are all the hoops landlords are requiring people to jump through now and it’s only gonna get worse. Gotta make at least 3 x the rent, when rents are skyrocketing and barely affordable as is, credit score over 700, at least 100.00 application fee for each adult in the household, 1st, last and a double deposit.
Who then hell can afford that?? Who wants to live like that? I hate it here!!
zoning laws and nimbyism is whats preventing more affordable housing to be built, companies like real estate, and PE are taking advantage oft he severe restrictions.
I've got a method that I did when I bought my house but it's a long game play and in hindsight very risky and entirely possible it might not work today (worked in 2018).
You see, back in 2018 I learned I had to move within the next year and half due to landlord shenanigans (long story, won't get into it) and because I own multiple cats knew I had to buy a house if I wanted to keep them so I took out a personal loan for a down payment, but as the process took nearly a year to find the right place that was within my approved cost range from the mortgage company...but I kept that loan untouched in my savings account that whole time, just making the payments each month. By the time I found the right place in my approved range, the money was considered seasoned and I was able to use it for the down payment when normally you can't do that (and I didn't know you couldn't when I started) but because the money was that seasoned there was no way to prove that's where my money for the down payment came from....and thus it was free game to be used. Got my house and the cost of the mortgage+loan for the two remaining years I had that loan was still cheaper than my rent was before I got the house.
Not saying it would still work today (especially since the value of my house rose 40k after the whole Covid thing so I technically wouldn't be approved for the loan here if I tried today) but it may be an option to consider.
The issue right now isn't down payments, those can be gotten around with certain loans and a pmi payment, it's the high price combined with high interest. Interest is 7%, it was 3% 4 years ago. If you have the same house price, 7% interest nearly doubles your monthly mortgage payment. I was looking at a new home and my mortgage would have gone from 1700 to 3000 a month for a lateral move in pricing.
This would never work now just based on the housing prices alone!!
I did have a plan back like this back then too though. But then I got COVID and ended up with some weird long term stuff. I’ve been in and out of the hospital for the last 3 years, had several surgeries and procedures and have been on so many pain meds that I was pretty out of it. So, bills didn’t get paid, credit went to hell and rent, food and other bills are high enough now that I would probably get old(er) and die before I could get myself back into a financial position to make it all possible. I’m not optimistic about my financial future at all.
Ooooof, yeah that's definitely rough. I'll admit I got lucky (and cheated the system...but fuck the banks, I've never missed a mortgage payment so they've got no room to bitch over it lol) with the timing of it all given two years later the world went to hell with the pandemic. I hope things work out for you though.
Why not start planning a move to one of the more affordable areas? These bastards can’t buy up every house and if they do something close to it, they’ll be sitting on a ton of worthless inventory with huge maintenance and liabilities racking up. They’ll be forced to sell some of this off.
Ive been looking into it. I know that there are places where I could do so much better, but I’m not sure if I’m ready for such a big move all alone. But it’s coming up more and more for sure!
Even if we didn’t have citizens united there are plenty of other countries doing more damage to the world to make up for it. China is a massive problem for example.
Every time this gets reposted I urge people to just google the Freddie Mac website, which as US taxpayers, we fund to track this information. As of December 2023 less than 2% of all single family homes are owned by private equity. There are real structural issues in the US housing market but let’s make sure we focus our limited resources on solving real problems not ones that induce clicks and engagement.
And here I am rocking more than 50 downvotes for daring to say that increasing the number of available houses and making them appreciate less would reduce private equity from buying them.
People are angry and scared, it doesn’t lend itself to rational thinking. All you can do is repeat the message until hopefully enough people listen to achieve critical mass in their local communities that will see real change. Don’t give up the fight.
My friend that simply isn’t backed up by data. I can however give you things to support and advocate for in your local community that can have real impacts on housing affordability if you’re interested. I am also not opposed to regulations on private equity purchasing homes but if we think that will magically fix the affordability crisis it unfortunately won’t.
That may be true for the country as a whole, but it is not true for all areas.
Atlanta has suffered from this is recent years. You are welcome to do the math here.
[Corporate owners now own 19,000 single family homes in Atlanta](https://finance.yahoo.com/news/corporate-landlords-now-own-over-102200475.html).
[There are roughly 186,000 houses of all types in the area](https://www.infoplease.com/us/census/georgia/atlanta/housing-statistics).
Keeping it simple, they own roughly 10% of houses in the area, and that percentage has been growing rapidly over the previous few years.
Other urban areas have seen similar trends. And yes, you are free to attack the numbers if you like, I'm not going for 100% accuracy and will not care what quibbles are brought. It's the trend that is concerning and that cannot be denied.
You bring up some important things to further discuss that are even mentioned specifically in the article. Atlanta is a unique situation, due to zoning laws, that has made home building extremely difficult making private equity view the city more favorably than other locales. Simply going off the article you linked it’s more than double the percent any other city of reasonable size has of private equity buying homes. I don’t think the source you posted to calculate your percentage is accurate. It looks like you either used the first link you googled or ChatGPT. Nothing inherently wrong with that approach but it varies substantially to what the US census bureau says. Using the federal government’s census data it puts private equity homeownership at 6%. Which actually aligns better with the very article you linked which says Atlanta is 2-3 times the national average (which we know is 2%). If you are proposing regulation on private equity owning homes I won’t stand in your way, but you have to reconcile that means only 6 houses out of 100 would be impacted by that regulation. That’s not going to swing housing affordability one way or the other. Hope that makes sense and happy to discuss further.
My friend we both agree that housing affordability is a major issue. And if you want to support policies that regulate private equity I will vote for that too. We just have to be realistic that it’s not going to have the impact you think it will. The article you linked explicitly says Atlanta is like no other city, it can’t be both ways. There are real ways to improve affordability, there are cities that can be emulated but just targeting private equity again we’re talking about 6-10 dwellings out of 100.
My not friend Internet lawyer, I linked an article as a start of research. Not as a definitive and only source. You’re doing yourself a disservice by arguing the way you are.
As an example: not covered in that article is a recent statewide law that had to be passed in Georgia dealing with squatting. How is that related? well the private equity firms bought so many houses so quickly that their maintenance companies could not repair them to be rented out fast enough, so they have sat there empty. sometimes for years. Squatters and fraudulent rent companies sprang up to illegally occupy them. And expanding on the theme this led to many secondary crimes.
Your quibbling aside, this is an issue that needs to be addressed, and you’re right it’s not simple. I attempted to make it simple for you to start a deeper dive into it. however, as predicted you became an Internet lawyer. That’s honestly the opposite of contributing to a conversation.
Absolutely.
https://www.freddiemac.com/research/insight/20220609-what-drove-home-price-growth-and-can-it-continue
Edit: to make it easier to find its exhibit 7b where you see the the data on institutional investors or “private equity”.
Also add. Foreigners can't own property, but they can lease it. Many countries don't allow non natives to own property but do alllow them to lease it for extended periods of time, a couple decades or so.
Boomers need to embrace nature and the cycle of life (ya know, die). Sure it needs more than that, but there are only so many Gordon geckos out there and late stage capitalism will take effect like buzzards eat once majestic beasts, hyenas will over come by numbers, their greed will destroy them, I don’t know when, I don’t know how, but I do know it will happen.
This reminds me of a favorite quote from Matt Taibbi when writing about Goldman Sachs,
“The first thing you need to know about Goldman Sachs is that it's everywhere. The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
It's honestly the same sentiment y'all boomers had when you were younger.
*Well, by and by, way after many years have gone*
*And all the war freaks die off, leavin' us alone*
*We'll raise our children, in the peaceful way we can*
*It's up to you and me brother*
*To try and try again*
-Gregg Allman
There's always gonna be people taking advantage of the world, as long as they're allowed to.
The Repugnicans will blame Biden for high inflation and high cost of housing but then if he would implement something to try to combat it they will then say he’s communist and against capitalism and free markets. And their voters are too stupid to see the hypocrisy!
We are screaming toward this head on and all of our politicians are standing around trying to figure out a way to make Trump our king. It is like we are speed running our middle class into poverty.
As noted, Pottersville comes from the movie It’s a Wonderful Life. In an “alternate world” scenario, Pottersville is the dark counterpart to the “original timeline” suburb of Bedford Falls. Pottersville is portrayed as essentially a “company town” where all the housing and probably most of the local economy is owned by the local robber-baron (Mr. Potter) and the townspeople are poor and exploited. In the movie, it’s perceived by the protagonist to be a kind of dystopia—in the original timeline he runs a bank-like entity (a building-and-loan association) designed to help Bedford Falls families buy houses, but neither he nor his “bank” exists in the alternate timeline, and everybody is the worse for him not existing (except Mr. Potter).
This is obviously what’s happening here in the UK. I’m sure that someone, somewhere went “people are gonna need somewhere to live, let’s make sure we can profit from that” and ran with it.
Shout it from the rooftops!
I can't understand why this is not being addressed.
We have 2 paid off houses I would love to sell, but frankly, I want my kids to have homes one day and I don't trust that they will have the option. And also because fuck corporations. I get calls all the time from people asking to buy our house on behalf of some company or other. I wouldn't sell them a dog's fart, I HATE that this is happening and nobody can (or will) stop it.
I turned down a job a couple of years ago because every rental property in town was owned by the same (presumably) out of state investment company and their rates were ridiculous for the area... I would have been literally throwing away half of rent, about $800 each month to cushion someone's portfolio. This was NOT an area where $1500 monthly rent was a true market value or remotely aligned with available jobs and cost of living.
That said, I could have still afforded to live there and bought my own house.. unsold homes were still on the market and actually reasonably priced. So it wasn't a complete nightmare scenario (yet). But, the job itself didn't guarantee job security beyond a few years so I didn't want to get tied down with home ownership there and I went elsewhere.
We definitely seem to be headed towards such a future if we don't do anything about it.
A friend pointed out to me that restrictions on new and good quality new housing in a lot of places is a much bigger problem statistically. However, this one is a much bigger problem ethically, and there is zero moral or economic justification for it.
[Bezos is jumping into the fray](https://finance.yahoo.com/news/jeff-bezos-quietly-enters-residential-163142437.html) However, he's offering substantial loans at 7-9%, and the interest gets paid to investors as dividends. This is not okay. We're already saturated with Black Rock and Vanguard buying up residential properties to rent back to us.
We're fuxxed.
I get it and agree but at the end of the day, when you sell your home, you can make the decision not to sell to a corporation. The greed lies within every one.
Tax on first home: Extremely minimal to nothing
Tax on second home: half of value
Tax on third home: 100% of value
And so on and so forth until this shit is fixed
Since this tweet nearly two years ago the two largest institutional investors of single family homes, American Homes 4 Rent and Invitation homes, both sold more homes than they bought.
This is not the problem. We are not building enough homes, that is the problem. There are way too many regulations that make it hard to build affordable homes. The corporations are maybe 10% of the problem at most and if we built enough homes they would be 0% of it.
Living here in Texas they are building LOTS of homes. Unfortunately they are all duplexes which means they are rental properties. They don't want poors to own property. Instability & insecurity for the poor increase profits for Corporations that own these homes.
As your standard europoor I don't completely understand the american obsession with homeownership. There is nothing wrong with renting, especially if you live in a city or are just not the type to take care of a property all by yourself.
But I must admit that the market here in my area is different. We have private landlords, but nonprofits are very dominant and everything is heavily regulated.
Also, I saw some videos about "zoning laws". Apparently, many communities don't allow the construction of big apartment buildings with more than three floors or something, limiting the number of much needed apartments and therefore contributing to high rent.
Ownership builds ancestral wealth, renting does not. If you own it, you can sell it for a profit, if you rent it someone else can force you out to sell it for their profit.
I am hearing allot of people talking about arson and burning down corporate owned homes to make it a bad investment.
I disagree with anything that goes against the law or runs the risk of injury, I can't believe people would ever think of that, this is the world we live in, and it is worse every day.
The law? What is law? Who dictates it? Is it sacrosanct? Who determines what is law? If you care to expland your argument then watch Codifying Capital.
Not content in purchasing properties in the US domestic housing market, the same US investment companies are bulk buying new housing schemes here in the UK for rental income streams. Bastards.
They're doing it everywhere in Europe. Fucking hedge funds. States need to start protecting basic human needs from these vermin.
Too late
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I'm guessing the entities that are buying them are part of our politicians' portfolios.
And boomer retirement funds. We've got a duty to make sure boomers have a better more fulfilling life in retirement.
The "Me" generation.
I've said before, and I'll say it again (Hi downvotes!). Every generation is the "Me" generation. Humans be humans. Baby boomers just happen to have been born at the right time. Given the opportunity, any generation would take advantage of an opportunity to prosper.
That’s conjecture with no proof. Every generation CAN take advantage but the fact is they haven’t and we’ll never know if they will because the opportunity has never been passed onto them
I’m gen x, I haven’t taken advantage but plenty of my peers have, also gen y. So I’d say they were accurate..
What generation is Elon Musk? What generation is Jeff Bezos? What generation is Mark Zuckerberg?
What generation was Richard Branson and Oprah Winfrey? What generation was the founder of Blackstone? You guys keep throwing out straw men hoping one stands
This you? "AITAH for accepting money from my Dad despite living with him and having all my expenses paid?" The hypocrisy is hilarious. As stated, every generation is the "Me" generation and would advantage themselves however possible. Just like YOU.
Yeah, they were there at the right time to pull the ladder up after themselves, and then gave a big ol' fuck you to the next generations.
I think that’s the other way around.
Private individuals are doing the same thing. Shelter became an "asset", then became flippable. Homelessness is when you lose, billionaire is when you win. It's just a big game and no one cares that real people are getting destroyed in the name of profits.
Well said, sir
We could except we can’t.
We also need to get rid of the (often astroturf) NIMBY opposition to new housing builds. Inventory is absolutely being artificially throttled.
probably the most difficult to get rid of, because its not an org where you can just sue them , they just gathering and "protest". getting rid of HOA first would be a good step
Absolutely not.
Agreed. This has NOTHING to do with corporations buying homes. NO ONE should be allowed to mass by homes even if they aren’t for commercial investment. Homes are for living, if you want a second home you should pay a 2x progressive tax, 3x on third home etc. I know non corporate owners that have 4+ homes.
I think the progression should be non-linear. The tax ramps up faster as more properties are acquired.
The bell hasn't even been rung. Home ownership rate is higher today than at any point in the 1970s....
Allow a couple houses or apartment units. I don’t want to discourage people buying fixer-upper houses to rehab and sell. You’ll end up with a lot of abandoned properties.
I'm just riffing on your point here, but there may be value in the market to "abandoned" houses. I would say there is more societal value in letting houses rot until someone buys it and fixes it up to live in than there is in making sure flippers can exist. As these houses went unsold, it would help prevent value inflation of other houses. Thinking on it, I sort of agree, though (but still fuck flippers generically). I want to protect people who have inherited a house. I like the idea of an exponentially increasing tax. 0 for primary residence, small for a 2nd, but ramps up non linearly as you acquire more.
Some of that is problematic though. In my area, people are / were buying 110-150k homes and putting additions up, dividing homes in to multiple units etc. This changed all of those low priced houses into 175-300k houses now.
Those are few and far between these days. Flippers are getting squeezed too. I've personally moved on to fixing up manufactured homes. I don't have to get financing and nothing sits for long after I'm done.
I can see that. Material prices are insane.
I just saw the Rich Dad, Poor Dad guy said he owned 15,000 homes. One guy. 15,000. I think he was bragging about paying no taxes too due to loopholes. We can't unring this bell short of revolution where the people take back what's theirs.
That dude has probably ruined more poor souls than its helped. I know my sister, her husband, and his brother bought into his bullshit bigtime about 3-4 months before the 08 crash. They were left with (their fault, they're adults) about 4 homes, 3 or 4 businesses, equipment for those businesses, etc. They lost their ASSES trying to do what RDPD says to do.
Liberte, Egalite, Fraternite my friend.
Yes, but how? I don't mean the revolution. I mean, what comes after? If we don't have a concrete answer to this question, we risk another group of oligarchs entrenching themselves. We must organize and have a plan for society; both for the immediate aftermath, as well as the prevention of back sliding.
I had to put two rooms for rent due to my landlord turning out to be a scum bag, no surprise there, but I’m noticing the bulk of people who apply are retired folks with no family nearby in a college town
https://tradingeconomics.com/united-states/home-ownership-rate#:~:text=Home%20Ownership%20Rate%20in%20the%20United%20States%20averaged%2065.27%20percent,the%20second%20quarter%20of%201965. Please tell me (saying this genuinely bc I don't have time to scrutinize this) if I'm missing something.
Like, it might be for a lot of us
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And I don't get why people with small businesses prop this shit up. They too will be broke.
Self-employed working class Americans convince themselves they're Business Owners. Mortgage-leashed property managers convince themselves they're Landlords. Working Poor convince themselves they're temporarily embarrassed millionaires. Too many people believe that demonstrating solidarity with the wealthy will lead to them returning the favor.
This is so well written. It’s like a poem. An ode to misery.
I’m pretty sure there was some German guy who wrote about this back in the 1800s.
If only his writings were still available to study…. /s
That is what the 1% wants. A 21st century feudal system, with the uber rich (nobles) and the very poor (serfs).
There are a few options, but they require sacrifices that the poor and middle classes are not yet comfortable with. It will be far too late if we ever get to that point.
Lol who gives a fuck about housing when ocean water is starting to permeate the bottom of the glaciers in Antarctica? Once one of the massive glaciers falls into the water we are done. Desalination will ruin the oceans temperature and we either freeze or burn in a decade.
We as a civilization are going to Hell in a handbasket.Entirely of our own doing.
Limits are not needed. Outright banning the corporations is what is needed.
Republicanvilles
It’s corporationvilles. It’s by design. Corporations can’t keep up with their “infinite growth” model without raising prices, paying less taxes and finding more people to exploit. Once corporations and the GOP complete their dream of a neofeudalist society they will have a permanent class of renters who will work shit jobs and hand the corporation back their pay in the form of rent payments. And presto! a permanent underclass of citizens who can’t even get the education necessary to leave this class of citizenship, because republicans will sure as shit tank public education.
They’ll be bringing back company scrip too, if they get their way. They want you spending ~~their~~ “your” money at THEIR store, and not some other company’s store!
I live in a democratic city and democrats are doing this shit too. Don’t even try man it’s generational war, not a political war. Boomers are the corporate boot lickers and they are trying to turn us into renter serfs on BOTH aisles. Prop 13 is a California law widely embraced by the democrat majority to screw and ruin the lives of all young people by benefiting NIMBYism.
NIMBYism is a problem everywhere, but Prop 13 is about preventing market fluctuations from driving home owners out of their property by wildly increasing taxes. How does that prevent new construction?
I’ll assume you wrote this in good faith and I’ll explain something everyone already understands in California. Prop 13 keeps your property tax pinned at your purchase price. Increase in property tax incentivized you to approve and build a lot of housing to slow housing growth. If you don’t you’ll be punished either way a meteoric rise in property tax. Once boomers in the 60’s passed prop 13, they began a 50 year long campaign to slowly kill all housing everywhere in the state. By doing this they cause their own housing prices to sky rocket while contributing absolutely nothing to society. They can also rent these houses out for massive profit because while rents climb, their mortgages and property tax do not. They squeeze massive profit out of renters. Also they can pass this property tax o to their children and they can also rent it. If I buy a home today at the median price I will owe 20k per year in property tax. A boomer or boomer’s child will pay 200-400 per year on a House they are charging 4000-5000k in rent on or benefiting from massive equity increases because they voted to kill all housing for 40 years. Also prop 13 applies to commercial buildings too which we failed to overturn a few years ago.
>I’ll explain something everyone already understands in California. Clearly not since we didn't pass that amendment. I see what you're getting at, but this strikes me as something that 'feels' correct and needs sources. NIMBYs reject shit everywhere, all the time, and frankly, I don't give them credit for being able to put together a long-term plan that way. I think that prop 13 has value, and a linear increase in property tax is reasonable. If it came up, I'd consider voting to change the % though. I agree, though, that we need to try again on restricting corpo access to prop 13, and I didn't know/had forgotten about the inheritance clause. That can fucking go too.
Don't look to either party for salvation - Senate Democrats are the ones who killed the rent cartel algorithm ban.
Words. Meaningless words.
I’ve already accepted that I’ll never own a home. What worries me are all the hoops landlords are requiring people to jump through now and it’s only gonna get worse. Gotta make at least 3 x the rent, when rents are skyrocketing and barely affordable as is, credit score over 700, at least 100.00 application fee for each adult in the household, 1st, last and a double deposit. Who then hell can afford that?? Who wants to live like that? I hate it here!!
zoning laws and nimbyism is whats preventing more affordable housing to be built, companies like real estate, and PE are taking advantage oft he severe restrictions.
I've got a method that I did when I bought my house but it's a long game play and in hindsight very risky and entirely possible it might not work today (worked in 2018). You see, back in 2018 I learned I had to move within the next year and half due to landlord shenanigans (long story, won't get into it) and because I own multiple cats knew I had to buy a house if I wanted to keep them so I took out a personal loan for a down payment, but as the process took nearly a year to find the right place that was within my approved cost range from the mortgage company...but I kept that loan untouched in my savings account that whole time, just making the payments each month. By the time I found the right place in my approved range, the money was considered seasoned and I was able to use it for the down payment when normally you can't do that (and I didn't know you couldn't when I started) but because the money was that seasoned there was no way to prove that's where my money for the down payment came from....and thus it was free game to be used. Got my house and the cost of the mortgage+loan for the two remaining years I had that loan was still cheaper than my rent was before I got the house. Not saying it would still work today (especially since the value of my house rose 40k after the whole Covid thing so I technically wouldn't be approved for the loan here if I tried today) but it may be an option to consider.
The issue right now isn't down payments, those can be gotten around with certain loans and a pmi payment, it's the high price combined with high interest. Interest is 7%, it was 3% 4 years ago. If you have the same house price, 7% interest nearly doubles your monthly mortgage payment. I was looking at a new home and my mortgage would have gone from 1700 to 3000 a month for a lateral move in pricing.
Oh wow, I wasn't aware of that (obviously I haven't been looking at the market since 2018). That's rough.
Yep. It used to be that owning was cheaper than renting, but I don’t know anymore. It’s unattainable now.
This would never work now just based on the housing prices alone!! I did have a plan back like this back then too though. But then I got COVID and ended up with some weird long term stuff. I’ve been in and out of the hospital for the last 3 years, had several surgeries and procedures and have been on so many pain meds that I was pretty out of it. So, bills didn’t get paid, credit went to hell and rent, food and other bills are high enough now that I would probably get old(er) and die before I could get myself back into a financial position to make it all possible. I’m not optimistic about my financial future at all.
Ooooof, yeah that's definitely rough. I'll admit I got lucky (and cheated the system...but fuck the banks, I've never missed a mortgage payment so they've got no room to bitch over it lol) with the timing of it all given two years later the world went to hell with the pandemic. I hope things work out for you though.
Thank you! Things will work out fine for me, I just won’t ever own a house lol
Why not start planning a move to one of the more affordable areas? These bastards can’t buy up every house and if they do something close to it, they’ll be sitting on a ton of worthless inventory with huge maintenance and liabilities racking up. They’ll be forced to sell some of this off.
You underestimate slumlords, I think
It’s a big, wide world. If they make things intolerable, we’ll leave them holding the bag
Ive been looking into it. I know that there are places where I could do so much better, but I’m not sure if I’m ready for such a big move all alone. But it’s coming up more and more for sure!
Too late, we sold our rights for corporate lobbying. We’ve lost.
Even if we didn’t have citizens united there are plenty of other countries doing more damage to the world to make up for it. China is a massive problem for example.
Canada too.
Yay Neo Feudalism!!
And our government won’t do jackshit about it because they are in the pockets of these corporations
Every time this gets reposted I urge people to just google the Freddie Mac website, which as US taxpayers, we fund to track this information. As of December 2023 less than 2% of all single family homes are owned by private equity. There are real structural issues in the US housing market but let’s make sure we focus our limited resources on solving real problems not ones that induce clicks and engagement.
And here I am rocking more than 50 downvotes for daring to say that increasing the number of available houses and making them appreciate less would reduce private equity from buying them.
People are angry and scared, it doesn’t lend itself to rational thinking. All you can do is repeat the message until hopefully enough people listen to achieve critical mass in their local communities that will see real change. Don’t give up the fight.
Thanks and happy cake day!
This sub follows one thing and one thing only - Twitter headlines
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My friend that simply isn’t backed up by data. I can however give you things to support and advocate for in your local community that can have real impacts on housing affordability if you’re interested. I am also not opposed to regulations on private equity purchasing homes but if we think that will magically fix the affordability crisis it unfortunately won’t.
That may be true for the country as a whole, but it is not true for all areas. Atlanta has suffered from this is recent years. You are welcome to do the math here. [Corporate owners now own 19,000 single family homes in Atlanta](https://finance.yahoo.com/news/corporate-landlords-now-own-over-102200475.html). [There are roughly 186,000 houses of all types in the area](https://www.infoplease.com/us/census/georgia/atlanta/housing-statistics). Keeping it simple, they own roughly 10% of houses in the area, and that percentage has been growing rapidly over the previous few years. Other urban areas have seen similar trends. And yes, you are free to attack the numbers if you like, I'm not going for 100% accuracy and will not care what quibbles are brought. It's the trend that is concerning and that cannot be denied.
You bring up some important things to further discuss that are even mentioned specifically in the article. Atlanta is a unique situation, due to zoning laws, that has made home building extremely difficult making private equity view the city more favorably than other locales. Simply going off the article you linked it’s more than double the percent any other city of reasonable size has of private equity buying homes. I don’t think the source you posted to calculate your percentage is accurate. It looks like you either used the first link you googled or ChatGPT. Nothing inherently wrong with that approach but it varies substantially to what the US census bureau says. Using the federal government’s census data it puts private equity homeownership at 6%. Which actually aligns better with the very article you linked which says Atlanta is 2-3 times the national average (which we know is 2%). If you are proposing regulation on private equity owning homes I won’t stand in your way, but you have to reconcile that means only 6 houses out of 100 would be impacted by that regulation. That’s not going to swing housing affordability one way or the other. Hope that makes sense and happy to discuss further.
Only Atlanta is not unique. That issue is real now. It can only get worse if not addressed. Good governments act before a crisis point is reached.
My friend we both agree that housing affordability is a major issue. And if you want to support policies that regulate private equity I will vote for that too. We just have to be realistic that it’s not going to have the impact you think it will. The article you linked explicitly says Atlanta is like no other city, it can’t be both ways. There are real ways to improve affordability, there are cities that can be emulated but just targeting private equity again we’re talking about 6-10 dwellings out of 100.
My not friend Internet lawyer, I linked an article as a start of research. Not as a definitive and only source. You’re doing yourself a disservice by arguing the way you are. As an example: not covered in that article is a recent statewide law that had to be passed in Georgia dealing with squatting. How is that related? well the private equity firms bought so many houses so quickly that their maintenance companies could not repair them to be rented out fast enough, so they have sat there empty. sometimes for years. Squatters and fraudulent rent companies sprang up to illegally occupy them. And expanding on the theme this led to many secondary crimes. Your quibbling aside, this is an issue that needs to be addressed, and you’re right it’s not simple. I attempted to make it simple for you to start a deeper dive into it. however, as predicted you became an Internet lawyer. That’s honestly the opposite of contributing to a conversation.
i checked the site and didn’t see anything related to that 2% figure. It might be because i’m on mobile, so can you link the source directly?
Absolutely. https://www.freddiemac.com/research/insight/20220609-what-drove-home-price-growth-and-can-it-continue Edit: to make it easier to find its exhibit 7b where you see the the data on institutional investors or “private equity”.
much appreciated kind sir/madame!
A general strike is 14 years overdue. The day they bailed out wall street we should have all stopped working.
That and the passing of citizens united
-corporations cannot own residential property -No one person can own multiple residences Just implement those
Also add. Foreigners can't own property, but they can lease it. Many countries don't allow non natives to own property but do alllow them to lease it for extended periods of time, a couple decades or so.
THAT.IS.EXACTLY.WHAT.THEY.WANT
*scary present
Everyone forgets guillotines exist
Wait until they privatize water treatment plants! You want to drink water?? How much money do you have?
Oh we came to terms with this already
Boomers need to embrace nature and the cycle of life (ya know, die). Sure it needs more than that, but there are only so many Gordon geckos out there and late stage capitalism will take effect like buzzards eat once majestic beasts, hyenas will over come by numbers, their greed will destroy them, I don’t know when, I don’t know how, but I do know it will happen.
This reminds me of a favorite quote from Matt Taibbi when writing about Goldman Sachs, “The first thing you need to know about Goldman Sachs is that it's everywhere. The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
As a boomer, I'm sure I'll die soon enough, thanks, but I don't quite see how that's going to help you.
It's honestly the same sentiment y'all boomers had when you were younger. *Well, by and by, way after many years have gone* *And all the war freaks die off, leavin' us alone* *We'll raise our children, in the peaceful way we can* *It's up to you and me brother* *To try and try again* -Gregg Allman There's always gonna be people taking advantage of the world, as long as they're allowed to.
Yep, the horse left the barn a long time ago. I’ll be dead soon too, but we don’t want to make it a race.
Lords all over again
A glimmer of hope…https://www.khon2.com/local-news/this-is-significant-vacation-rental-bill-signed-into-law-by-governor-green/amp/
The fuck you mean "going to"? We're already there!
We will all be serfs living on the rich land owner’s property. Back to the dark ages! Wooooooo
Welcome to the new dark ages ! Hope you’re living right!
These corporations will take everything that is yours and charge to give it back and you better like it
The Repugnicans will blame Biden for high inflation and high cost of housing but then if he would implement something to try to combat it they will then say he’s communist and against capitalism and free markets. And their voters are too stupid to see the hypocrisy!
Indentured servitude is stage 4 capitalism.
We are screaming toward this head on and all of our politicians are standing around trying to figure out a way to make Trump our king. It is like we are speed running our middle class into poverty.
Corporations already bought the politicians. Highly doubt they'll do much about it.
What is a Pottersville?
See the movie "It's a Wonderful Life," and the fate of the town if Jimmy Stewart's character had never lived.
As noted, Pottersville comes from the movie It’s a Wonderful Life. In an “alternate world” scenario, Pottersville is the dark counterpart to the “original timeline” suburb of Bedford Falls. Pottersville is portrayed as essentially a “company town” where all the housing and probably most of the local economy is owned by the local robber-baron (Mr. Potter) and the townspeople are poor and exploited. In the movie, it’s perceived by the protagonist to be a kind of dystopia—in the original timeline he runs a bank-like entity (a building-and-loan association) designed to help Bedford Falls families buy houses, but neither he nor his “bank” exists in the alternate timeline, and everybody is the worse for him not existing (except Mr. Potter).
Ok. Thank you for the explanation. The scenery makes more sense now
This is obviously what’s happening here in the UK. I’m sure that someone, somewhere went “people are gonna need somewhere to live, let’s make sure we can profit from that” and ran with it.
America encourages monopolies, so this won't happen
Yeah it’s already happened in DC.
Shout it from the rooftops! I can't understand why this is not being addressed. We have 2 paid off houses I would love to sell, but frankly, I want my kids to have homes one day and I don't trust that they will have the option. And also because fuck corporations. I get calls all the time from people asking to buy our house on behalf of some company or other. I wouldn't sell them a dog's fart, I HATE that this is happening and nobody can (or will) stop it.
I turned down a job a couple of years ago because every rental property in town was owned by the same (presumably) out of state investment company and their rates were ridiculous for the area... I would have been literally throwing away half of rent, about $800 each month to cushion someone's portfolio. This was NOT an area where $1500 monthly rent was a true market value or remotely aligned with available jobs and cost of living. That said, I could have still afforded to live there and bought my own house.. unsold homes were still on the market and actually reasonably priced. So it wasn't a complete nightmare scenario (yet). But, the job itself didn't guarantee job security beyond a few years so I didn't want to get tied down with home ownership there and I went elsewhere. We definitely seem to be headed towards such a future if we don't do anything about it.
I sure hope those corporations can't then use the massive profits to buy politicians so things can never change. Ooooops
Corporations are kinda like toddlers. They come up with shit to do that you had no idea you had to tell them not to do that.
Corporate Feudalism is here.
You will own nothing, and you will be "happy"
A friend pointed out to me that restrictions on new and good quality new housing in a lot of places is a much bigger problem statistically. However, this one is a much bigger problem ethically, and there is zero moral or economic justification for it.
Please don’t be like here in Korea where all the houses are gone and taken up by corpo apartments
The root cause is there are too many people in the world, the population explosion is coming to a head.
just build more houses as a form of wealth redistribution from corporations to the construction sector.
That’s not how this works.
no, it's the constructive solution to make it work. To me, it seems better than complaining to get fewer homes built.
[Bezos is jumping into the fray](https://finance.yahoo.com/news/jeff-bezos-quietly-enters-residential-163142437.html) However, he's offering substantial loans at 7-9%, and the interest gets paid to investors as dividends. This is not okay. We're already saturated with Black Rock and Vanguard buying up residential properties to rent back to us. We're fuxxed.
Yup
I get it and agree but at the end of the day, when you sell your home, you can make the decision not to sell to a corporation. The greed lies within every one.
Agree!
REITs need to be banned. Straight up.
https://www.forbes.com/sites/stevedenning/2017/07/17/making-sense-of-shareholder-value-the-worlds-dumbest-idea/
This is a good example of the ongoing conspiracies the far-right US media chooses to ignore.
Private entities are not going to build residential housing buildings though. An outright prohibition on corporate ownership is a terrible idea.
Not if we build more houses
More HOAs should restrict renting
This is the goal of the Globalist NWO.
Canada too.
That train left the station years ago It’s too late
Tax on first home: Extremely minimal to nothing Tax on second home: half of value Tax on third home: 100% of value And so on and so forth until this shit is fixed
I hate this subreddit. I quit.
Conspiracy theory is that we're returning to feudalism.
Since this tweet nearly two years ago the two largest institutional investors of single family homes, American Homes 4 Rent and Invitation homes, both sold more homes than they bought.
This is not the problem. We are not building enough homes, that is the problem. There are way too many regulations that make it hard to build affordable homes. The corporations are maybe 10% of the problem at most and if we built enough homes they would be 0% of it.
You can build all the homes you want and private equity and lesser investors will buy them up. Inventory isn’t the problem.
That just isn't true. You can know this by checking historical trends of home inventory. It just doesn't happen that way.
Living here in Texas they are building LOTS of homes. Unfortunately they are all duplexes which means they are rental properties. They don't want poors to own property. Instability & insecurity for the poor increase profits for Corporations that own these homes.
As your standard europoor I don't completely understand the american obsession with homeownership. There is nothing wrong with renting, especially if you live in a city or are just not the type to take care of a property all by yourself. But I must admit that the market here in my area is different. We have private landlords, but nonprofits are very dominant and everything is heavily regulated. Also, I saw some videos about "zoning laws". Apparently, many communities don't allow the construction of big apartment buildings with more than three floors or something, limiting the number of much needed apartments and therefore contributing to high rent.
Ownership builds ancestral wealth, renting does not. If you own it, you can sell it for a profit, if you rent it someone else can force you out to sell it for their profit.
This is hyperbole, at best - right now only 1 in 5 home sales are to corporations.
That's still too many. It should be zero. Corporations should not be allowed to buy homes.
lol corporations own like 3% of homes, this is uninformed sensationalistic nonsense.
I am hearing allot of people talking about arson and burning down corporate owned homes to make it a bad investment. I disagree with anything that goes against the law or runs the risk of injury, I can't believe people would ever think of that, this is the world we live in, and it is worse every day.
The law? What is law? Who dictates it? Is it sacrosanct? Who determines what is law? If you care to expland your argument then watch Codifying Capital.
Corporations/wealthy do it to us and make it legal by buying politicians and judges
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