There is no question that private equity firms and other corporate landlords buying up single family homes has undermined homeownership, driven up rents, and is destroying the ability of the working class to build wealth in the future. These firms dominate markets by making cash offers that aren't really traditional cash offers. First time homebuyers simply cannot compete. Recently Congress took up the issue and the subcommittee researching it found the following facts:
- Corporate ownership of single-family homes began to increase after the last recession, with these firms initially targeting foreclosed homes.
- The 3rd quarter of 2021 showed the biggest year over year increase in corporate ownership of single-family homes in 16 years.
- There are five private firms that own the majority of all the single-family homes purchased, they are: Invitation Homes, American Homes 4 Rent, FirstKey Homes, Progress Residential, and Amherst Residential.
- These 5 companies purchased 76,235 rental homes between March 2018 and September 2021.
- If they sold their homes they almost exclusively sold to other private firms and not individual buyers.
- These 5 firms specifically targeted Black neighborhoods.
- While the average Black population in the US is 13.4%, they represent 40.2% of all tenants in homes owned by these 5 corporate landlords. That is three times the Black population and a staggering number.
- These 5 private firms are also targeting neighborhoods with higher percentages of single mothers.
- Between 2018 and 2021 these private firms increased rents and fees by 40%. This doesn't include rental increases in 2022, which have been extreme.
- The number of tenants that have fallen behind on rent since 2018 has doubled under the thumb of these corporate landlords.
- Specifically, tenants behind on rent increased from 11.3% in 2018 to 19.1% in 2021. Tenants that fell behind on additional fees increased from 10% to 20.7% during that time.
In lay terms, think of it like Amscot applying their business model to home ownership and becoming your landlord. Corporate ownership of single-family homes is a threat to every working family and consumer in America. Financially instability, hardship and an inability to save and build wealth will continue to rapidly increase and will become the new normal for millions of working families and consumers. By taking away a family's ability to build wealth through homeownership, these companies are guaranteeing a generation of working Americans that will live paycheck to paycheck with no chance of saving enough money to raise their economic profile. If you are renting a homeowners by a corporate landlord and they are hassling you or overcharging you then call us today.