Yes and no on the legit. BlackRock did buy homes for income producing reasons. However, some of what was reported as BlackRock was Black Stone as they are in the real estate business. So when we take all of them BlackRock, Black Stone, and REIT's, or institutions overall, combined they are only 5% of that market. Buying single family homes for income purposes. Black Stone who owns the most real estate, owns a lion share of multifamily housing or what we would call apartment complexes.
So while the problem is chalked up to supply and demand in that there is a shortage of available single family homes. 95% of homes that are unavailable is due to mom and pops. Seems all the years of watching infomercials that come on and say hey come to my meeting and learn how you can build a income stream from real estate, was acted upon.
So we have like 12, 13+, or so million folks who have bought homes to build a better future for themselves. On average each mom and pop owns 3 properties. The median income for Americans is what like in the 50-60k range but for folks owning property there median income is the 90k range. So while it is the whole picture of both institutions and mom and pops that has led to a shortage. However, can either be seen as doing wrong or being greedy.
As the institutions do so to provide income for their investors. With REIT's being very popular amongst small investors as it offers some of the highest income or growth for the amount they invest. So pound for pound just makes good investing sense for the dollars they invest.
So we have a shortage and the easy answer is well build more but that is a can of worms as oft local government and there laws becomes a problem. You have home owners who vote down new homes being built in certain areas as it would dilute their personal net worth as most of it is tied up in their home. As well as other problems, such as affordability and etc. So as with most problems it is nuanced.
So while the problem is chalked up to supply and demand in that there is a shortage of available single family homes. 95% of homes that are unavailable is due to mom and pops. Seems all the years of watching infomercials that come on and say hey come to my meeting and learn how you can build a income stream from real estate, was acted upon.
So we have like 12, 13+, or so million folks who have bought homes to build a better future for themselves. On average each mom and pop owns 3 properties. The median income for Americans is what like in the 50-60k range but for folks owning property there median income is the 90k range. So while it is the whole picture of both institutions and mom and pops that has led to a shortage. However, can either be seen as doing wrong or being greedy.
As the institutions do so to provide income for their investors. With REIT's being very popular amongst small investors as it offers some of the highest income or growth for the amount they invest. So pound for pound just makes good investing sense for the dollars they invest.
So we have a shortage and the easy answer is well build more but that is a can of worms as oft local government and there laws becomes a problem. You have home owners who vote down new homes being built in certain areas as it would dilute their personal net worth as most of it is tied up in their home. As well as other problems, such as affordability and etc. So as with most problems it is nuanced.
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