Wall Street Could OWN 40% of the US Housing Market within 20 Years.

Wall Street could own Main Street since hedge funds have been buying up single family residential homes in the US. In 2021 more than 18% of all homes were purchased by institutional investors. The number of houses purchased by funds will likely increase in 2022 and 2023 moving into the next decade. Eventually 40% of all homes in the US could be owned by Wall Street institutions. Wall Street funds are also buying apartment buildings in large numbers as well.

Companies like Opendoor, Zillow and Offerpad which are known as ibuyers have been buying homes and flipping them for a loss. This model is likely to not be profiltable as the market softens. This might be motivation for these companies to buy and hold the homes they buy as rentals instead of just selling them to end users.

Black Rock, Invitation Homes, and numerous similar buyers are using cheap wall street cash to buy up the housing market and rent the homes out. It is likely they could corner the housing market by 2030, meaning if you wanted to buy a home a buyer would just go directly to the hedge fund and buy the house on a seller carryback or an estate for life.

These wall street buyers also use data from companies like Zillow and Redfin to decide which areas are the best to purchase homes and which areas are likely to have the highest net rents per purchase price.

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