US house prices are being pushed up by pension funds that are outbidding middle class families and purchasing up to 24% of houses in some areas they then rent out

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 • https://www.dailymail.co.uk, By Adam Schrader

John Burns Real Estate Consulting has said pensions and private-equity firms are competing with young homebuyers which will make home costs ‘permanently more expensive,’ The Wall Street Journal reported.

The outlet highlighted that investors, rather than young Americans, are benefitting most during an era of the cheapest mortgage financing ever while inflating home prices at alarming rates. Rents are also rising as home prices increase.

Rather than letting young homebuyers have a chance at the homes, investors are snatching up the properties and reselling them at a premium or renting them out – often to tenants unable to afford to get on the property ladder because of rising prices.

The consulting firm noted that home prices rose 11% in 2020 even as the COVID-19 pandemic raged. Home prices will rise another 12% this year and another 6% in 2022, the company estimated.

  • John Burns Real Estate Consulting has said pensions and private-equity firms are competing with young homebuyers
  • The firm estimates that the new trend will make purchasing a home permanently more expensive
  • The outlet highlighted that investors, rather than young Americans, are benefitting most during an era of the cheapest mortgage financing ever
  • Rather than letting young homebuyers have a chance at the homes, investors are snatching up the properties and reselling or renting them at a premium 
  • The pensions and investment firms are inflating home prices and rental prices at alarming rates
  • The consulting firm noted that home prices rose 11% in 2020 even as the COVID-19 pandemic raged
  • Home prices will rise another 12% this year and another 6% in 2022, the company estimated 

2 thoughts on “US house prices are being pushed up by pension funds that are outbidding middle class families and purchasing up to 24% of houses in some areas they then rent out

  1. nootkabear

    Goldman Sachs said back in 2008 that only the rich should own homes, and the rest should be renters. That was during the height of foreclosure hell. We have been going in that direction ever since.

    Reply
  2. Pingback: US house prices are being pushed up by pension funds that are outbidding middle class families and purchasing up to 24% of houses in some areas they then rent out — Truth2Freedom’s Blog – The BlackRobed Mafia

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