Another article showing concern in the housing market- yet the author may have lacked critical thinking

[KrisZ]

"You will own nothing and be happy", that's the slogan of the World Economic Forum.
Home ownership is certainly on their radar.

It's pure communism, except this time, instead of a sudden change by a revolution, it's a slow and methodical process.

 

[alarmguy]

Just read an opinion article implying single family home ownership is not the future. Major corporations/private equity are buying 25 percent of the single family homes. Home buyers can't compete with these cash corporate buyers , that buy as as for full price.

The end state according to the opinion article is Americans are going to be renters paying corporate America and private equity firms rent, and the property appreciation is going to go to the corporations, not individual Americans. Much if the world uses a model where individuals are unable to own the home the live in.

I agree but will most likely be the lower income levels.
WIth determination anyone who exerts the effort will be able to buy if they choose too.

I also agree with @KrisZ to the "methodical process" fooling the general public but do not want to get political and at what point the public might wake up and reverse course.
I have seen in Florida, first hand, investment firm buying up parts of a new home community direct from the builder, an entire subdivision of the community and then rent, most likely to workers at nearby a major UPS distribution center.(speculation on my part regarding UPS workers in a rural area, but the rest is fact)

 

[zzyzzx]

 

[GON]

I agree but will most likely be the lower income levels.
WIth determination anyone who exerts the effort will be able to buy if they choose too.

I also agree with @KrisZ to the "methodical process" fooling the general public but do not want to get political and at what point the public might wake up and reverse course.
I have seen in Florida, first hand, investment firm buying up parts of a new home community direct from the builder, an entire subdivision of the community and then rent, most likely to workers at nearby a major UPS distribution center.(speculation on my part regarding UPS workers in a rural area, but the rest is fact)

AG,

This is the OPINION article on the subject that implied federal government actions are actually negative to individual single family home ownership- while benefiting private equity firms that are receiving subsidies from the federal government,
https://www.foxnews.com/opinion/elites-own-nothing-take-away

 

[SC Maintenance]

Just read an opinion article implying single family home ownership is not the future. Major corporations/private equity are buying 25 percent of the single family homes. Home buyers can't compete with these cash corporate buyers , that buy as as for full price.

The end state according to the opinion article is Americans are going to be renters paying corporate America and private equity firms rent, and the property appreciation is going to go to the corporations, not individual Americans. Much if the world uses a model where individuals are unable to own the home the live in.

I just returned from a short vacation to Charlotte NC, a city I lived in many years ago but hardly recognize anymore. A decade ago they put in a light rail and a walking greenway next to it - and now for miles, likely 10's of thousands of units of multi story condo and apartments along it. Every type of restaurant and bar available, high end retail - standing room only for as far as the eye can see. And zero children. It seems to match this picture pretty well, and if you never intended to have children, I can see the allure.

In the meantime their parents, the baby boomers, who worked for years and saved their money, are retiring in mass and buying up every stitch of property that says "retirement home" and has a decent climate.

So the question for me - in 10 years when the boomer generation has passed, when Gen X who is much smaller and who's income opportunities were squished for years due to the "great recession" will not be able in general to afford this type of retirement. So who will want all these retirement homes? Will the millennials move in and change their lifestyle from the revamped urban 20 minute city, and if so - who will live in their condo's.

Obviously too long a timeline for any one person to really care, but its not to dis-similar to the last 80 years. People moved off the farm and into the city for industrial jobs. After the war times were good and a large middle class was formed creating the suburbs. Most city cores became blighted and derelict. Now those areas are being revamped with great expense. I wonder how the next long term cycle plays out.

 

[GON]

I just returned from a short vacation to Charlotte NC, a city I lived in many years ago but hardly recognize anymore. A decade ago they put in a light rail and a walking greenway next to it - and now for miles, likely 10's of thousands of units of multi story condo and apartments along it. Every type of restaurant and bar available, high end retail - standing room only for as far as the eye can see. And zero children. It seems to match this picture pretty well, and if you never intended to have children, I can see the allure.

In the meantime their parents, the baby boomers, who worked for years and saved their money, are retiring in mass and buying up every stitch of property that says "retirement home" and has a decent climate.

So the question for me - in 10 years when the boomer generation has passed, when Gen X who is much smaller and who's income opportunities were squished for years due to the "great recession" will not be able in general to afford this type of retirement. So who will want all these retirement homes? Will the millennials move in and change their lifestyle from the revamped urban 20 minute city, and if so - who will live in their condo's.

Obviously too long a timeline for any one person to really care, but its not to dis-similar to the last 80 years. People moved off the farm and into the city for industrial jobs. After the war times were good and a large middle class was formed creating the suburbs. Most city cores became blighted and derelict. Now those areas are being revamped with great expense. I wonder how the next long term cycle plays out.

SCM,

Great question.....

I read an article published a decade or so ago that predicted the collapse of homes prices that were primarily owned by retired folks. That not enough middle class/ middle aged people to backfiill the dying baby boomers in these homes.

The exact opposite happened. There are waiting lines for these dying baby boomer homes. Both the soon to retire folks are competing with younger adult Americans for these baby boomer homes. One need only look at Florida and Arizona to directly see this phenomenon occurring.

One of many examples is Green Valley, AZ. Primarily a municipality filled with retired folks, young adults are moving to Green Valley with perceived "affordable housing" that can't be found in the nearer to Tucson area. I visited a friend that is retired and lives in Green Valley about five years ago. He thought zero appreciation for his home looking forward. Boy, was he wrong. A Green Valley house rarely lasts uncontracted after being listed more than a few days.

 

[SC Maintenance]

SCM,

Great question.....

I read an article published a decade or so ago that predicted the collapse of homes prices that were primarily owned by retired folks. That not enough middle class/ middle aged people to backfiill the dying baby boomers in these homes.

The exact opposite happened. There are waiting lines for these dying baby boomer homes. Both the soon to retire folks are competing with younger adult Americans for these baby boomer homes. One need only look at Florida and Arizona to directly see this phenomenon occurring.

One of many examples is Green Valley, AZ. Primarily a municipality filled with retired folks, young adults are moving to Green Valley with perceived "affordable housing" that can't be found in the nearer to Tucson area. I visited a friend that is retired and lives in Green Valley about five years ago. He thought zero appreciation for his home looking forward. Boy, was he wrong. A Green Valley house rarely lasts uncontracted after being listed more than a few days.

I know nothing about Arizona but Florida housing is 100% dictated by net migration - mostly retirees but also young people. It will take a decade or more to figure out who the winners and losers are in this scenario. The inner cities didn't become derelict overnight either.

Another trend is in the 70's - the last high inflation period - the only asset that did well was housing - it almost tripled from 1970-1982. Maybe that will be our fate?

Or maybe we will have net migration offset the birth rate decline and they will buy these houses?

Still, I haven't seen any mention of Detroit or Cleveland prices going through the roof. Even cities like Chicago and Minneapolis, when adjusted for inflation - still aren't much better than their 2006 peak even with the latest rise. All real estate markets are local.

 

[GON]

I know nothing about Arizona but Florida housing is 100% dictated by net migration - mostly retirees but also young people. It will take a decade or more to figure out who the winners and losers are in this scenario. The inner cities didn't become derelict overnight either.

Another trend is in the 70's - the last high inflation period - the only asset that did well was housing - it almost tripled from 1970-1982. Maybe that will be our fate?

Or maybe we will have net migration offset the birth rate decline and they will buy these houses?

Still, I haven't seen any mention of Detroit or Cleveland prices going through the roof. Even cities like Chicago and Minneapolis, when adjusted for inflation - still aren't much better than their 2006 peak even with the latest rise. All real estate markets are local.

Spot on, cities like Chicago have seen little appreciation since 2006. But in the last 18 months even Illinois, with the worse population growth (net year over year population loss for over ten straight years) is seeing a appreciation in single family home prices. May have nothing to do with rise in value---- maybe have everything to do with changes in the buying power of the USD.

 

[PimTac]

Still, I haven't seen any mention of Detroit or Cleveland prices going through the roof.

Detroit once had 1.8 million people living in the city. Now they have 620,000. That might be one reason. Cleveland hasn’t done much better.

 

[SC Maintenance]

Detroit once had 1.8 million people living in the city. Now they have 620,000. That might be one reason. Cleveland hasn’t done much better.

I wonder how many live in Florida or Arizona?

 

[4WD]

Detroit once had 1.8 million people living in the city. Now they have 620,000. That might be one reason. Cleveland hasn’t done much better.

Once were stunning cities - America had many that were …

 

[GON]

I wonder how many live in Florida or Arizona?

Good question.

With the buying power dynamics, I wonder if the trend of homeowners in places like Michigan, Minnesota, Illinois, Pennsylvania, etc will be able to afford to sell in those and like states, and buy in Arizona, Florida, etc.

In 2005 one could sell a single family home in Illinois, and have great buying power in Arizona. Today, that is no longer feasible. One prays to sell there Illinois home, only to be hopeful to be the "top offer" on a home in Arizona.

The only county in Arizona to see a ten year not loss in population is Cochise county. Housing prices today in Cochise county are red hot. With a shortage of single family homes across the USA, even places with declining populations are seeing robust sales of homes.

 

[IndyIan]

"You will own nothing and be happy", that's the slogan of the World Economic Forum.
Home ownership is certainly on their radar.

It's pure communism, except this time, instead of a sudden change by a revolution, it's a slow and methodical process.

So its corporations in the free market right now that is buying up homes, and apartment buildings, and farm land too, is that communism or capitalism? See below.

Just read an opinion article implying single family home ownership is not the future. Major corporations/private equity are buying 25 percent of the single family homes. Home buyers can't compete with these cash corporate buyers , that buy as as for full price.

The end state according to the opinion article is Americans are going to be renters paying corporate America and private equity firms rent, and the property appreciation is going to go to the corporations, not individual Americans. Much if the world uses a model where individuals are unable to own the home the live in.

 

[SC Maintenance]

So its corporations in the free market right now that is buying up homes, and apartment buildings, and farm land too, is that communism or capitalism? See below.

Its not capitalism - simply because of the financialization of everything corporations can get unlimited leverage and credit, so can outbid any individual investor. If the housing market collapses in 5 years, they will either walk away, go bankrupt, or demand better terms. If you owe the bank a $million the bank owns you. If you owe the bank $Billion, you own the bank.

Crony capitalism at best.

 

[PimTac]

So its corporations in the free market right now that is buying up homes, and apartment buildings, and farm land too, is that communism or capitalism? See below.

Sounds like corporate fiefdom

 

[CKN]

Sounds like corporate fiefdom

Yea-kind of like the oil everyone buys.......

 

[GON]

So its corporations in the free market right now that is buying up homes, and apartment buildings, and farm land too, is that communism or capitalism? See below.

Free market must be holistic and across the board. Many in the U.S. don't really want a free market.

There are thousands of examples of why the U.S. single family home market has become less and less of a free market more increasingly over the past three decades. Not allowing financial institutions to "fail", and then allowing them to providing U.S. taxpayer back funding to private equity firms to compete against U.S taxpayers for single family homes is just one example.

I purchased a home in 1994 financed by a local community bank, this local financial institution held and serviced the loan. The president of the bank came to inspect the home himself; he knew the community and what the home would sell for if I defaulted on the loan. It was called portfolio lending. Today, it is near impossible for 99 percent of community banks to do single family home portfolio lending- and the reason is simple- lack of a true free market.

 

[SC Maintenance]

Yea-kind of like the oil everyone buys.......

Ha - the oil market is the epitamy of a free market. The end product itself has daily price discovery. If you own the mineral rights to land that is found to have oil on it - someone will pay you to develop it. If you have the skill and a few bucks you can actually buy an oil well.

I went to college with someone who ended up doing this sort of thing. Of course he worked in the oil business for big companies for a long time so he knew what he was doing - but he would buy marginal properties from the bigs when oil was low - so they wouldn't have to pay to shut them in. He would keep them producing for a few years, and when oil prices went up he would sell them. https://www.unitedexploration.com/direct-investing-in-oil-wells.html

No government subsidies - in fact the government is trying to destroy said market in varios ways.

 

[Rmay635703]

The crisis is massive government overspending since 2020. How that shakes down is yet to be seen.

The overspending started in 1982 but recently…
There was overspending since 2018 during the make fun of the fed gate for cutting off the easing.
And honestly qualitative easing since inception has been a disaster like feeding increasing amounts of morphine to a drug addict.

Nobody wants the necessary deflation

Just read an opinion article implying single family home ownership is not the future. Major corporations/private equity are buying 25 percent of the single family homes. Home buyers can't compete with these cash corporate buyers , that buy as as for full price.

The end state according to the opinion article is Americans are going to be renters paying corporate America and private equity firms rent, and the property appreciation is going to go to the corporations, not individual Americans. Much if the world uses a model where individuals are unable to own the home the live in.

That is why you need laws like the rest of the world that ban or place heavy restrictions on foreign and corporate ownership of single family homes and land. (The Chinese own over 51% of key domestic mines that affect national security as a very aggregious example)

It’s not capitalism - simply because of the financialization of everything corporations can get unlimited leverage and credit, so can outbid any individual investor. If the housing market collapses in 5 years, they will either walk away, go bankrupt, or demand better terms. If you owe the bank a $million the bank owns you. If you owe the bank $Billion, you own the bank.

Crony capitalism at best.

No it is real uncontrolled capitalism at its purest.
No purely capitalist country has ever survived as long as we have, simply not possible and why capitalism needs limits and socialist stopgaps on basics it simply is incompatible with. (Like paid fire departments or water)

it was said at our founding that pure unlimited capitalism can only lead to what you describe
Corporate ownership of property is the opposite of communism and aligns to the guy with the funny mustache . (It’s in the dictionary.)

Always amazed by how many fail basic civics on what’s what,

So the US does not have a socialism or communism problem , our actual problem is far worse.

Unlimited Corporate ownership is very bad
Pure unlimited capitalism is unsustainable and will always lead to a monopoly and failure.

Basic Econ 101, last 40 years have been a particularly long economic experiment that has failed spectacularly.
Instead of tossing out the bad policies that don’t work from the 80’s we just double down (even though most of what has changed for handling children, loans, the poor and middle class doesn’t work and will never work)

 

[KrisZ]

So its corporations in the free market right now that is buying up homes, and apartment buildings, and farm land too, is that communism or capitalism? See below.

Does it have to fall under communism right now? It's plain to see where it is all heading. All you have to do is look at China, where mega corps are working very closely with the CCP and do the party's bidding. That's the model heading our way.

The tech giants in US are already working with the gov. and are giving away people's information without any warrants.

Does it have to be full on communism right in your face, or when you're sent to a gulag before you notice anything?