Folks, this is alarming. Hedge funds and other private Equity managers continue to buy up real estate in mass and rent it back to Everyday Folks at just ridiculous prices and just out. Estimates suggest that by 2030, 60% of homes in America will be owned by Corporate America If you are someone that owns or hopes to own a house, a condo, or a shack, well, you're straight out of luck. Wall Street will do everything in its power to make sure that you're a permanent renter.

And of course, it goes even further than that after becoming the first private Equity manager to hit $1 trillion earlier this year. Blackstone Just said a couple days ago that they've quote built up the biggest war chest of unspent cash anywhere in the world and their next step is buying up more and more houses, including dorms. They're also going to be buying up some warehouses and data centers as well. This is in addition to the hundreds of thousands of single family homes the company has purchased since the start of the Great Recession in today's video.

I'm going to break down rather violently how Wall Street and the hedge fund world are gobbling up the housing sector, driving up prices and making tons of Moola and how recent data shows that this is going to get much, much more extreme heading into the next couple of years. We're going to get right into it. But the only thing I ask in return for all the work that goes into a video like this is that you hit that ravishing like button and also don't forget to subscribe. Okay, so imagine for a second, a lovely second, that you own a house in a neighborhood and then all of a sudden big institutional investors buy up all the homes around you and then resell them to their clients as rental backed.

Securities Well, that's what's happening in many, many neighborhoods across the United States Take a look at this North Carolina neighborhood identified by the New York Times This is one of many, many neighborhoods that have seen more and more and more homes be owned by institutions by hedge funds instead of by families. And in fact, if you look at the percentage of big money all cash investors buying homes across the market, they're on a massive, massive uptrend. And once these institutions go and buy up most of the houses in the neighborhood, they then have the power to control that particular neighborhood. They'll control the homeowners associations, they'll control local regulations, They'll change the rules into their favor, They'll then have a monopoly over housing, and they'll be able to drive rent significantly higher.

Which does what to a neighborhood? Well, It forces people that want to move into that neighborhood or have to move into that neighborhood to pay much, much, much higher rent prices, or fight for the few homes that are still available. And if they manage to buy one of those homes, they have to pay extremely high prices for those homes and borrow at rates that are at record highs. So what's happening is that more and more homes are just becoming owned by institutional? Wall Street Dudes Now I know what you're thinking Char Charito What is so bad about having say George Soros as my landlord if he takes care of me half as good as he took care of his third wife, maybe it's not that bad of a deal. Okay, but the difference between you and her is that you have to pay rent.

And here's the thing. How do you think you're going to feel when some 60% of homes in the country are owned by? Corporate America In just a few years in 2030, How you think you're going to feel? well? I'll feel real bad Z Charlie I'll feel real bad Z You know Charlie buying up all the homes that sure ain't too nice of them. Well guess what fund managers like Blackstone have quote enormous capital and can buy whatever they like if you feel bad about that. well that sounds like a you problem.

you could feel as bad as you want while coughing up your entire paycheck to these big institutional dudes. But here's what RFK Jr said about the 60% number quote they've now decided to buy every single family home in. America If they stay on the current trajectory, they will own 60% of homes in this country by 2030. They are literally trying to buy everything.

but Charlie Don't be ridiculous, the average person can still go out and buy a home, right? Charlie right? Charlie Well, yes, if they have the money, but inflation already destroyed their excess savings, they're already going into massive amounts of debt just to live. And of course, mortgage rates are three four times what they were a couple years ago. So no, they can't buy houses. They can't compete with these all cash buyers in the institutional world.

even the people that do have a little bit of money. they get out bid by Wall Street RFK Jr Went on to note that all of us know someone or multiple people who have found it impossible to purchase a home out a reasonable value because they keep being outbid by some random company. and if you do a little bit of research, you can already see in major city after major city after major city. while more and more homes are being owned by institutions you look at Vegas The redder the area, the more investor purchases you have slowly taking over the entire city.

Atlanta You're seeing same thing with this map showing accumulation in Darker areas. If you're looking at North Carolina you're looking at some areas in California Washington Illinois Well, you're seeing tons and tons and tons of neighborhoods. Maybe not in the direct main city, but definitely in the suburbs where these big funds are going and buying up a ton. A ton of these single family houses.

And once they buy them up, they're not going to be selling them. They're going to be renting them out and raising the rent for years And years and years. Folks, this is just getting started. The amount of single family houses that Wall Street controls right now is actually very, very small compared to where it's going to be in 10 15, 20 years now.

Why does Wall Street want houses all of a sudden? Why? Well, obviously sure, real estate is a great long-term investment. People have to have houses, but at the same time, Wall Street doesn't have a lot of other areas to put capital in order to get a safe return on investment. They're running out of areas. So where do they put all the extra money that they're clients give them.

And they make? well, mostly real estate. But of course, you're also seeing the private Equity world put a lot into real estate as well. And folks, you got to understand that these homes provide an interesting opportunity to rake in the big bucks. Not only do people have to again have houses places to live in order to survive, but if you control entire markets, you have a ton of price setting power and accordingly, it's very, very easy to resell these as investment packages to your clients.

From Review Journal quote before it was Wall Street Packaging risky subprime mortgages into Mortgage Back Securities Now it's Wall Street Buying as many entry-level homes as they can get their hands on renting them out in an alleged predatory fashion and pack in them as rental back. Securities Now here's the thing. If you thought that single family houses were enough, you were, of course wrong. Companies like Blackstone are now realizing holy cow, we can make a ton of money off student housing.

They bet some 13 billion on that segment earlier this year, expecting an impending student house price Surge And quite frankly, this is a really, really smart idea really. Genius of them because most students have to pay their tuition and housing with government subsidized loans anyway, so they don't care. They just put it on the loan and they figure one day maybe I'll pay it off. Then they push politicians to forgive that student loan and the politicians don't.

And then all of a sudden you get the next generation of people that are going and making the same mistake. But anyways, just like colleges have realized that they can just keep raising costs and students will simply pay well. Blackstone is realizing that they too can start increasing the cost of student housing. They can buy up all the student housing and then really, really jack up the price and they're going to make an instant rate of return.

And listen to this, it gets even better. This is quite the investing thesis. Student housing spikes in value in times of recession as fewer families can afford to rent whole units for their students. The recent economic turmoil is no different.

So when families have a little bit more money, they might give students a little bit more money so they can rent their own unit or share a unit with less people. But when economic times are rough, students don't get that money and all of a sudden they have to do five or six people per small apartment. And when you're renting to five or six people, when you're renting out individual rooms instead of one whole apartment, you end up being able to charge a lot more in total. And that's exactly what Blackstone is realizing here.

Quote: Student Housing Rent Rose by 4.7% in 2022 and a similar trend is happening with pre-leasing for the Fall of 2023. Blackstone Inc A nearly 1 trillion Investment corporation with hundreds of analysts at hand realized what was happening and got in on the action. It quickly acquired American Campus Communities, the largest student housing company in the US for $1 13 billion. In fact, Blackstone has been milking student housing so much that there's even media Outlets depicting pictures of Blackstone in bed with major University Systems.

Like the University of California, they have this weird relationship where the UC Board of Regents goes and invests a ton of money in a Blackstone fund. and then all of a sudden Blackstone goes and buys up all the areas around, netting huge profits for not just the UC Board of Regents and that overall fund, but also for their private investors. Now, I'm actually a Ucum I Went to the Santa Cruz campus and quite frankly, I can confirm personally that there's a massive, massive housing mess at basically all of the UCS and it's a great great business for anybody that owns the few available units in the areas around those campuses. And based on statistics around the country, you're seen similar Trends almost everywhere.

You even seen it over in Europe and Blackstone is smart. They're taking advantage of it over there too. Earlier this month, they just closed a $456 million deal for student housing in London and Edinburgh. Now of course, there are a lot of bills out there, like the End Hedge Fund Control of American Homes Act which proposed to put tax penalties on companies who own single family homes in excess of 100 and that Force hedge funds and investors in violation of this to sell at least 10% of the total number of single family homes per year to exit out of those positions.

Now the Bill's intention is to support more families, but there's also the reverse argument which says hey, yes, this could take some competition out of the real estate market, but at the same time, this could also gut investment into new housing. And Renovations at a time where families have been squeezed and can't afford to buy new homes in the first place because of really, really, high rates and very, very little savings left. So a couple good arguments: I Want to hear your thoughts: What do you think our corporations going to continue to buy up all the homes and should we let that happen, Would you be willing to give up your current home or future home to a hedge fund in order to help them boost their Roi Well go ahead and let us know your thoughts down below. Anyways, back apps off today's video make sure to hit that ravishing like button and subscribe if you found value in it.

We'll see you in the next one folks.