Wall Street Investors Buying Up Entire Neighborhoods In Poorer Areas

wall street

Wall Street investment firms are eager to become your new landlord. New York Times Dealbook reports:

Large investment firms have spent billions of dollars over the last year buying homes in some of the nation’s most depressed markets. The influx has been so great, and the resulting price gains so big, that ordinary buyers are feeling squeezed out. Nationwide, 68 percent of the damaged homes sold in April went to investors, and only 19 percent to first-time home buyers.

Wall Street played a central role in the last housing boom by supplying easy — and, in retrospect, risky — mortgage financing. Now, investment companies like the Blackstone Group have swooped in, buying thousands of houses in the same areas where the financial crisis hit hardest.

Blackstone, which helped define a period of Wall Street hyperwealth, has bought some 26,000 homes in nine states. Colony Capital, a Los Angeles-based investment firm, is spending $250 million each month and already owns 10,000 properties.

Big investors are now staking a claim to entire neighborhoods. With little fanfare, these and other financial companies have become significant landlords on Main Street.

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  • Anarchy Pony

    Buy it all, make us rent forever.

    http://www.youtube.com/watch?v=rVDo_Ub-s9U Dunno why I didn’t think about this earlier. Let’s Lynch the Landlord!

    • emperorreagan

      Please set up your pay-check auto-deposit to be delivered to JP Morgan Chase. We will fund your debit card with a meal stipend three times daily, to be spent at establishments we own within a 1.5 hour window of times we determine as breakfast, lunch, and dinner. Please note that your window is subject to change without notice.

    • BuzzCoastin

      even if you “own,” you rent
      mortgage, real estate taxes, insurance
      and then after you pay three times the amount you bought the house for
      you only have to pay the taxes
      and if you don’t
      you suddenly find out you didn’t really own the place
      you were renting it from Uncle Homeland

  • The Well Dressed Man

    That’s how these people operate. They chisel you out of your home/job/lifestyle/whatever, and then try to sell it back for ten times more then they invested.

  • Simon Valentine

    monopoly pre-dated and pre-dicted this! we should have been warned! heed jumangia!

    alright spears aside so the cavalry can come full circle into the turtle…

    it’s not the first time this happened.
    it won’t be the last.

    Feudal is NOT “not an existent entity” (i know it’s awhile since i played that one, but hey, dust is wine too).

    it’s a farm or mathematical problem. far more a :) articulateless issue.
    procedural generation.
    the inevitability of that we appeared here.

    “plop” come the humans.

    build an accurate Sim Farm (or God), as they say “then we’ll talk”

  • Will Coles

    This is all fairly impressive, if this was planned before 2008 it’s incredible. Essentially these groups prospered from the crash in ’08, got bailed out with public money, used that money to buy dirt cheap houses (many if not most lost due to that bursting real estate bubble) & then will rent it back to people. They may own such a huge amount of the rental market that they may be the ones that decide the average national rental price.

    • The Well Dressed Man

      Apparently a lot of Cold War era engineers ended up in financial services. The level of math used for many of their schemes is pretty extreme.

  • echar

    I am going to get Disney on this… It’s a tale as old as time!

  • Noah_Nine

    attack of the scum lords

  • http://www.zoboprepublic.wordpress.com/ zobop republic

    Blackstone Group a.k.a. (Bastards Greedy)

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