BlackRock is being accused of buying 50,000 homes, then selling some to themselves for more than double….. pricing families out of their homes and or buying a home.
According to reports BlackRock investors find neighborhoods with ‘growth potential’ – meaning neighborhoods with family packed communities, good schools and middle-class prices.
They then offer more than 50% over the asking price, eliminating the chance of a family being able to afford the home.
Reports say that BlackRock then turns around, sells the property to themselves for more than double, turning a $300,000 home into a $600,000 home overnight – setting the ‘market rate’ for the homes.
Now that BlackRock owns the homes, they turn around and rent them to the very families that can’t afford to buy them – because they were priced out.
However, fact-checkers say this isn’t really the case.
The firm, says it doesn’t directly purchase single-family homes but invests in real estate broadly.
BlackRock says the 50,000 homes purchased were not purchased by them but a Blackstone subsidiary.
They also say that BlackRock does not use algorithms to target middle-class blocks for bulk cash buys, but rather uses Institutional investors as a whole.
Those investors snapped up at least 20% of single-family rentals in hot markets like Atlanta or Phoenix per U.S. Census and Federal Reserve data
They also say the price hikes are not due to selling themselves properties rather pricing wars fueled by underbuilding.
Median home prices are up 50% since 2020 to over $400,000.
Property taxes have surged in many states, sometimes doubling in reassessments.
In Georgia, for instance, investor purchases contributed to a 25% tax hike in some counties.
BlackRock’s indirect stakes in rental firms like Tricon mean they profit from higher rents
Institutional landlords now control 2-25% of rentals in big cities, charging premiums that outpace wages.
$1,800 mortgages are morphing into $2,500 rents – partly due to investors who renovate and hold long-term.
