Anyone seen Blackrock impact on housing and which areas?

115 Replies

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@Jon Greerack blackrock is the company the fed used to prop up the stock market. Fed is using them to buy up houses. They propped up the stock market, now its real estate. They also bought a lot of Bitcoin. This is all fed driven and there's an agenda behind it all.

@Mike Hillman to you last point, and thank you for all the info and insight, I’ll be studying that as it’s advanced, I believe that, and don’t call me crazy, that all this get as big as you can and control as much of the country as you can is bad for us. I have thought about this, and if there was anything government did, it should be to put all the corporations and franchises in their place, and only let them operate in a 100 mile radius or one state. Extreme, and unintelligent i know, but we need some real vision to ever move forward as a country. Corporations and these Firms have all grown far to big, for far too long, and it’s narrowing down. It turns out Blackrock owns a bunch of stake in some of the largest companies as well.

I think assuming they are just after 300 unit apartment complexes as usual is ignoring the fact that they are buying up houses all over the place right now and new housing tracts that are finished and out bidding people by 20% over asking. There is something fishy as heck going on here and I really hope someone has info on how they are getting government money involved in this to redistribute trillions. Thanks again, I’m still trying to learn about this and I appreciate the knowledge!

@Cody L. well this logic pretty much relates to the stimulus being printed out. The government is so big and they are putting money in peoples pockets, so take advantage of it. Blackrock and others or so big and putting money in people’s pockets etc. The problem we have is power consolidation against the power of the people which used to make us free based on our version of government in the US.

I agree to be opportunistic in the present, but to have vision and knowledge for where this stuff leads and how to prepare. It sounds like this thing is bigger than the cred it’s getting here, and specifically with Blackrock, and I would guess many shells they can operate under.

We're based in Los Angeles County, and invest locally (multifamily mostly. I was not active during the last crash, but I know Invitation Homes and Colony Capital bought huge amounts of SFR back then, and even more in Riverside and San Bernardino. At this point, I would not say that we're seeing as much big institutional activity in LA County for SFR rentals, probably because of prices. There are some larger local players who are buying aggressively in C and D areas, but the numbers on most higher quality stuff does not pencil out for a buy and hold rental.

I think in Florida, Texas, Georgia, Arizona, the institutional activity in the SFR space is bonkers. I hear the same in North Carolina. That is tough for first time local buyers.

@Pete Harper if that’s the case on news sources, where do you suggest I look? I figured google wouldn’t show what DuckDuckGo might, that’s why I suggested a less biased search engine. I just pick news sources that lead me to stuff I find relevant. No need for the attack on Revolver as they are working hard like others to cover news and have an opinion like me. If you really search it, there’s articles all over the place about this as another post mentions WSJ.

Please don’t make this thread about which news sources you hate or one sided politics. This doesn’t have to be damage control for corporations or government etc. The attacks lead to the thread being deleted and it comes from thinking too small to only allow your views to exist. I would appreciate getting to learn some more about this. So Blackrock is buying heavy in Houston, San Fran, Charlotte... Anybody else seeing anything? I would sure as heck want to know about BLK buying 1/4 of Houston inventory. I believe at some point a corporation gets so big, that people realize, these things could harm us. Is it too late? Anybody have any ideas on how we can beat BLK?? There should be some way for people to compete especially in their hometown right? The article I read ended by saying we’re four letter worded. Not sure about that...

@Jasmine H. thanks again, do you have any sources on how the feds are using BLackrock to buy houses?? I’d like to see proof, quantities and numbers for myself. This all sounds very impactful with large implications on where this leads. Nonetheless I’ll be looking into it further as time permits.

@Stephen Bradford    I support, however, build-to-rent single family developments.  In the long run, affordability of housing for renters occurs as new housing gets built.  As a landlord, I guess you can argue that new developments are against your interests.  And you'd be right.

@Jon Greer Just pointing out the dubious news sources from the left and right sighted in this thread. If you don’t like my comment then use better sources.

@Pete Harper OK, disregard the article if you like.  I was pointing out that the distribution of institutional ownership is "lumpy" - i.e., lots of properties in certain areas, and none in others.  From everything I've read across various sources - WSJ, Fortune, Forbes, Atlantic, etc. - that is accurate, and I think it's interesting.  =-)  That's all.

Originally posted by @Lucia Rushton :

@Jon Greer. Here is the link

https://noqreport.com/2021/06/11/yes-blackrocks-home-buying-spree-should-concern-you/

 As others commented, we should look closer at the source of information. This article is posted in a section of their website and was tagged with "conspiracy theory" and "opinion pieces". The author himself uses horrible grammar and over half of his "opinion piece" is actually just quoting opinion posts from Twitter. In other words an opinion piece that uses Twitter as its factual basis. 

As far as those commenting with theories that BlackRock will buy all the houses and take over the government, why not just buy their stock if you are so bullish on their intent? It is on the NYSE and the ticker is BLK. Don't hate the player, buy their stock.

https://finance.yahoo.com/quot...

@Brian Ploszay this seems very true, what happens with new development and price. The huge other thing that plays into the timing of this housing sweep is the building material costs and I think that’s why it’s so interesting what the institutions are doing, and are they getting government aid to do so, while the average guy like me won’t touch a sheet of OSB with a ten foot stick right now. It sounds like there’s a huge opportunity for home builders, that’s for sure, just weird with lumber prices and inflation. Before 2008 the new construction was going crazy. It was about to kick off like crazy, and then these lumber prices hit. Now Blackrock and friends are buying, buying, buying, and who knows if it’s largely just to hedge against inflation. Could this be driving the lumber prices up too for the average guy that needs a room addition, chicken coop or shed? It’s crazy to watch a guy push a $3,000 stack of lumber out the door of HD but what’s not crazy now?

@Jon Greer     Lumber prices are starting to level off, if not go down.

Blackrock is one institutional investor buying houses, but they are a very small percentage of the market.  No group can corner the market, or really make a dent nationally on pricing.

I did research on this.  Big institutional investors make up between 1 and 2 percent of the purchases.  Investors on the whole are participating in buying houses.  But most are like me - smaller landlords.

@Joe Splitrock the "theory" isn't that Blackrock will buy all the houses and take over the government. I'm researching how Blackrock is buying all the houses in certain areas as reported by many credible news sources, and how they are being funded by the government (not sure about). Government bailouts and intervention in extreme markets does happen. None of these things should catch you by surprise. The government was trying to pass a bill that would give over 100% debt forgiveness for all people excluding "white" to start a farm and get paid to do it. A Wisconsin federal judge just rejected it as racist bidding of the government. Farmland is a significant part of real estate. How is the government influencing REI right now is an important question, and what kind of funding is being applied. Where does the small investor go, as many here are new to REI and should be learning about the market at large. I think the frustrating thing here for many seasoned investors on this forum, is the scale and level of dramatic change is unprecedented, and they don't have experience with this current market. It's never happened like this with lumber prices 3x-7x, housing prices so high for so long yet still a housing shortage, and people moving in mass away from some of the biggest cities to other states. Places like Idaho, Missouri, Tennessee have seen land prices more than double in the last year or two. Never happened so quick. Where does this lead? It seems we have to look forward and maybe really far back to when something like this happened in some other country. People that didn't have assets or real estate to sell will have to be very creative, lucky or blessed to break into this market from their job savings. Which leads to the question all ask here, will it come down aka crash soon? And most are saying it doesn't look like the trend goes away right now (I think), so how do we figure this thing out?

@Brian Ploszay Lumber prices are not down. They are way up from even a few months ago. Yesterday OSB at my local Lowe’s was $45 for 7/16 sheathing, while 2x4’s were $8.50. Anyone familiar with these prices knows that’s 3-6x from just over a year ago.

1/4 of the Houston market is huge considering the amount of growth TX is getting right now. Texas is probably the fastest growing state. Charlotte and other big, growing cities are seeing similar. I don’t think this is as small as some are theorizing.