Banks will own 40% of housing by 2030 (if trends continue)

[britanica]

I saw that Black Rock (or Blackstone? or both?) is hitting the housing market in a big way. This started in 2020 during the plandemic when people lost their homes due to not being able to afford them or people moving to other areas. They started offering above market value and snapped up a lot of houses. Needless to say, this continued into 2021, and 2022. As of this year, they are projected to own 40% of private housing on the market. This means these houses will become rentals or be used as air b&b destinations. I would imagine this will do wonders for the housing market... As in increasing the cost to buy a home even more. 

Right now, you can get a decent size house with a big yard in a safe area for around $240k with minimal work needed. This same house would cost close to if not over $1 million in the UK or AU. Not sure about Canada. My guess is by the time they destroy the market, it will be on par with other countries and you will need to be wealthy to be able to afford to buy a home in America. 

This is really bad. My husband and I intended on buying in 2020. It got pushed back because of covid. Then medical issues with our pets lead to a lot of bills. Needless to say, we are having to save for a down payment again. Only this time, because the interest rates are almost 7% instead of the 1.7% they were in 2020, we can't afford as much and there are seldom any houses in our price range now. When there is, they sell within 5 days. We would have to move to a rundown, crime zone if we wanted to buy a house right now. 

[YellowDragon]

Yeah it is not looking good. I hear similar. That by 2050, if will be over 70%. I think buying power and the ability to own land has been such a foundational piece that made America so great. It has not been in good standing for a long time though. We were once able to afford a big house with a good yard in a safe area with just the man working to support his wife and 5 children. And this was without a college degree. Then you track inflation and what the federal reserve did after the second world war and it makes more sense. They screwed us all over.

[Cosmic]

But how do we even fix this? The majority of gen Z can't afford housing and millennials are still struggling to buy homes. It seems like the majority of the country will end up renters and you will have to be a millionaire to own a home in the future. 

[chrysostom]

My first one was a $12K one bedroom condo. Fifty years later we have a two bedroom condo which is our seventh home. My advice to you is buy small because she will fill it. The only good thing about renting is that it limits the amount of junk that you accumulate. Tiny homes are in. 

[chrysostom]

7 minutes ago, chrysostom said:

My first one was a $12K one bedroom condo. Fifty years later we have a two bedroom condo which is our seventh home. My advice to you is buy small because she will fill it. The only good thing about renting is that it limits the amount of junk that you accumulate. Tiny homes are in. 

It took four four bedroom homes to raise two kids. 

[JRexx]

10 hours ago, chrysostom said:

Tiny homes are in. 

They are trendy, sure but not practical for most people. 

I think there is more value in buying land and just getting a prefab house. Or if you do buy a home, look for something with more land and less house. You can always expand upon that.