How Private Equity Is Changing Housing
2 days ago
- #corporate landlords
- #private equity
- #housing crisis
- The U.S. faces a housing crisis with a shortage of 4 million units, particularly starter homes and affordable apartments.
- High interest rates have increased mortgage costs and reduced construction, leading more Americans to rent, with half spending over a third of their income on housing.
- Causes of the crisis include restrictive zoning, permitting processes, and the rise of private equity in the housing market.
- Private equity firms have bought hundreds of thousands of homes since the pandemic, outbidding families and raising rents.
- In some areas, corporations own over 20% of residential properties, disproportionately affecting low-income, minority neighborhoods.
- Corporate landlords are more likely to evict tenants and neglect maintenance, worsening housing conditions.
- Policy proposals to curb corporate ownership include bidding restrictions, ownership caps, and higher taxes for large-scale owners.
- Without intervention, corporate ownership could exacerbate housing inequality nationwide.