How Healthy is the Housing Market?

I read a fascinating article this morning. While I don’t necessarily agree or disagree with the author’s argument, I was shocked at a stat the article pointed out (article below). The article states that big Wall Street Firms like The Blackstone Group are buying up mostly distressed houses across the United States, renting them out, and then packaging the rental income as securities in the secondary market. The Blackstone Group bought 1400 houses in one day in Atlanta and owns nearly 2000 homes in the Charlotte, North Carolina metro area. They currently own over 40,000 homes across America, spending $7.5 billion in the process! That just blows me away.

http://www.truth-out.org/opinion/item/20378-the-banksters-are-now-setting-up-the-crash-of-2016

newrentSo, the question I have is how healthy is the housing market when Wall Street firms are buying this many homes? This is the first time I’ve seen this stat or even read about it. When the housing numbers come out each month I’ve never seen this mentioned. The economic experts just talk about how the housing market is improving. Well, in my mind, this is not improvement. This is not the general public participating in a healthy housing market. This is giant Wall Street firms buying up homes.

This is the kind of stat that needs to be reported. The interest rates are rising and the talk is that the FED is going to stop monetary easing soon because the economy and housing market are improving. My concern is that by the time this stat comes to light, the interest rates will have risen and taken thousands of potential homeowners out of the market.

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3 Comments

Filed under Opinion

3 responses to “How Healthy is the Housing Market?

  1. wow no idea. But I guess if they want some in Charlottesville VA I’d help them. Just wonder who is the email from we get solicitations all the time from some, and think most of them bogus. How can you tell the real from the watch out scams.

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