Friday, June 11, 2021

Kiss the Neighborhood Goodbye?

 Apparently renters are more valuable than homeowners to Wall Street.  The Wall Street Journal reported Wednesday:


A bidding war broke out this winter at a new subdivision north of Houston. But the prize this time was the entire subdivision, not just a single suburban house, illustrating the rise of big investors as a potent new force in the U.S. housing market.

D.R. Horton Inc. built 124 houses in Conroe, Texas, rented them out and then put the whole community, Amber Pines at Fosters Ridge, on the block. A Who’s Who of investors and home-rental firms flocked to the December sale. The winning $32 million bid came from an online property-investing platform, Fundrise LLC, which manages more than $1 billion on behalf of about 150,000 individuals.

The country’s most prolific home builder booked roughly twice what it typically makes selling houses to the middle class—an encouraging debut in the business of selling entire neighborhoods to investors.

“We certainly wouldn’t expect every single-family community we sell to sell at a 50% gross margin,” the builder’s finance chief, Bill Wheat, said at a recent investor conference.

From individuals with smartphones and a few thousand dollars to pensions and private-equity firms with billions, yield-chasing investors are snapping up single-family houses to rent out or flip. They are competing for houses with ordinary Americans, who are armed with the cheapest mortgage financing ever, and driving up home prices.

“You now have permanent capital competing with a young couple trying to buy a house,” said John Burns, whose eponymous real estate consulting firm estimates that in many of the nation’s top markets, roughly one in every five houses sold is bought by someone who never moves in. “That’s going to make U.S. housing permanently more expensive,” he said..... Rest of article.

Out-of-state landlords and investors are the best way to destroy neighborhoods.  Nice. 

There is an interesting Twitter thread about this story.   Tim Poole covered it on his radio show as well.



Anonymous said...

As long as there’s a well managed HOA with a board full of Karen’s, I’m in!

Anonymous said...

yeah and its not mom and pop landlords getting passive income from rentals. It’s big multinationals like CONREX buying up foreclosures to build enormous portfolios. And once they have enough property in a region, they can set the price of rent in that region.

Anonymous said...

Interesting that you say that. Next Tuesday night we have a special HOA meeting with my neighborhood in ridgeland. Seems all the goises are being purchased by rental companies. Its getting out of hand. We co sider ourselves a good neighborly community but recently we've had several issues with tenants of rental houses.

Anonymous said...

We are living in late stage capitalism. A term most of you ignorant hayseeds are as unfamiliar with as you are the actually definition of “socialism”

This greed is the kind of shit that got people to support the Red October revolution.

Anonymous said...

More HUD approved forced diversity!

Listen, if y’all would just stop being so racist then your property values wouldn’t decline!

Anonymous said...

I've lived in my last neighborhood and will be moving out the country sooner rather than later. Suburban American, even here in the Deep South, is going to undergo a drastic change over the next 10 years, and what @8:43 described is going to be the norm. It's the liberals ultimate utopian dream, and I want no part of it.

Anonymous said...

"No restrictions on capital" "No restrictions on investments". There are billions of investments dollars out there just looking for a place to land and the middle class housing market is ripe. People have got to have housing. Buy 'em up and set the market. It's ironic that in future years our grandchildren will be all renters and the Chinese will be owners. We asked for it. What a world!

Anonymous said...

The Great Reset. Build Back Better. See Klaus Schwab's World Economic Forum commercial (pulled) on youtube stating "you will own nothing and be happy...everything you need you will rent". "Every 5 years or so you must appear before a board and justify your existence. If it is found that you dont contribute as much to the system than you extract, perhaps a little more, then you should be exterminated in a kindly manner" Fabian Socialist George Bernard Shaw on Oligarchial Collectivism (also can be watched on youtube).

Anonymous said...

Housing has been one of the few avenues for lower and middle income people to build wealth. Those days are disappearing. Late stage capitalism is looking more like feudalism every day.

Anonymous said...

Capital seeks return. This is a direct result of the low interest rate environment started during the Obama administration. One day someone will write an article how the policy destroys retiree nest eggs and the pension funds they rely on.

Bill Dees said...

This is really good argument for taxing investment income at the same rate as earned income And amen to 8:48 AM.

Anonymous said...

@9:24 PM
Didn’t Japanese investors try that in the 1970s and 1980s only to get gouged by property taxes?
I guess the difference today is that China owns our politicians., all they way up to the highest office in the land.

The Chinese are woke to the Global Central Bankers. I suspect they have made all the right moves to take full control from the centuries old banking families of Europe, who previously controlled international banking through the BIS. You see, creating money from nothing doesn’t work forever if you don’t create anything else. China is creating money from nothing and putting it to work taking over everything from Semiconductors, to rare earth mineral mines, meat packing, and rental property.

Meanwhile the USA is deficit spending to feed, house, and clothe worthless felons from the cradle to the grave.

Anonymous said...

Corporate rental companies are cancer, and this whole neighborhood purchase for rental is going to be awful for that area. I am sure if the builder built them for that purpose, they are built below spec house grade and have a shelf life of 10 years or less before they start needing serious repairs.

Krusatyr said...

People hate HOAs until home renters park old car hulks on blocks in front yard, paint houses purple and orange, grow crops of crabgrass and bull-thistle, raise pit bulls to sell and perform DIY cable hookups off of their neighbors' lines. HOAs work well if renting is expressly outlawed or expressly permitted and in the context of other reasonable rules that effectively prevent one property from sucking value out of the others.

BTW, some fabulous multi-million dollar homes are vacation rentals, well regulated by a local zoning board and HOA, so don't slam each HOA as a Karen posse.

Anonymous said...

"Listen, if y’all would just stop being so racist then your property values wouldn’t decline!" Now ain't that the pot calling the kettle black.

Anonymous said...

@8:48, well since you’re so much smarter than we “hay-seeds,” why don’t you enlighten us and tell us what you mean by “late stage capitalism.” I haven’t heard that term - guess a retired attorney can be a hayseed - and I’d like to know what it means. And why you say we are there. Sounds ominous.

Anonymous said...

@8:41a- Companies like Conrex will actually PROTECT homeowner’s real estate investments. Conrex actually spends to repair their homes (I know this first hand) and sets rental rates at price points that allow them to grow their business and keep (most of) the undesirables out. It’s no easy feat to rent from them.

Typically, those mom and pop landlords do not keep their properties up, because you cannot charge low rental rates and have enough to pay the mortgage, taxes, AND repairs. I’ll never understand why people think rent should be cheap. Rent stems from a business transaction, not a charity event. Not to mention, when government policies drive up the cost of taxes, labor, and repairs, it’s a no-brainer that rent will increase as well.

Why are people complaining about companies/investors buying up cheap real estate? It’s a free country, anyone with the funds can do so. Don’t want internationals buying up our homes? But them yourself! Don’t want policies that drive up the cost of rent? Re-evaluate who you vote for. It’s not complicated logic.

I know of a locally-owned investment company that owns dozens of houses in Jackson. They don’t invest a penny into them. Why, you ask? Because the tenants the government approves to occupy the houses DESTROYS everything. So, the owner quit investing in repairs. These areas will never be nicer until the occupants respect other people’s assets and their own environment. (... and, until Jackson fixes its crime problem.)

Anonymous said...

This is the whole reason Madison created an inspection process on rentals. I never can understand why someone wouldn't save a little money and have a $1,000 house payment vs a $1500 rental. Even as a renter you most likely are still responsible for cutting the grass.

Anonymous said...

You must get paid per word to be a corporate shill. Also, your random capitalizations scream UNHINGED BOOMER

Anonymous said...

@11:29a- Most cities have inspection rental processes and fees now. Pearl, Brandon, and Flowood all do. They are actually good for property values and keep the landlords honest.

The reason most pay higher for rent is because they previously made irresponsible choices and their credit won’t allow for a home purchase. However, there are a few that simply need temporary housing and the rental rate satisfies their temporary situation.

Anonymous said...

8:48 - Fun fact: the term "late stage capitalism" actually predates the creation of the Soviet Union. So I guess "late" is a relative term.

Anonymous said...

It is prolific in Jackson and apparently the City is not interested in passing any ordinances that would address landlords and give the City some power to deal with run down properties.

Anonymous said...

11:46 Don’t get so triggered over ALL CAPS

Anonymous said...

Jesus the readers here are seriously negative and should probably go ahead and end their lives

Anonymous said...

@11:46a- So to you, truth is shrill? What exactly did I say that was incorrect? I’d love to get paid for stating truths, but I don’t.

Once again, those who don’t want to discuss the truth about anything resort to name calling. Good thing you’re not paid based on your ability to be accurate, because not only am I NOT unhinged, I’m a Gen-X’er.

Anonymous said...

I personally lost 4 bids on homes last month to these shadow buyers. funny part was they were all purchased BEFORE the sellers market kicked in. Sounds like some DEMOCRAT insider info crap. And they will rent those homes to a bunch of "woke" from California and Georgia. Or use them for housing illegals .

Anonymous said...

Can we sell all of Jackson?

Anonymous said...

@1:46p- You’re basically saying counteroffers equal democratic insider “info crap.” Why didn’t you counter back to win the bids? Especially given that you stated it was during a period of a buyers’ market... there should have been plenty of wiggle room.

Please drop a couple of those addresses so we can all research the shadow buyers that outbid you. Deeds, as well as company registrations, are public record.

Be careful using CAPS, I’ve already been called a shrill, boomer today, lol!

Anonymous said...

10:06 AM
You're right. I used to hate the idea of HOAs, but now I live in one that KF covered. It's nice although you can't do some things. The are my grandmother lives in outside Ellisville used to be a much nicer place, but some people moved in on the corner and it looks like your stereotypical redneck shack. I wish I had enough money to buy the property and tell them to fuck back off to Ovett. Mostly all the older people that grew up with my grandparents passed on and we don't know too many neighbors now.

Anonymous said...

10:08, since you're such a "progressive" buy you a house in Jackson, say in the McDowell Road Pinebrook area, then move the family in and let us know how that works out for you??????

Me Thinks you're full of talk and no walk!!!!!

Anonymous said...

I personally lost 4 bids on homes last month to these shadow buyers.

Sounds to me like you misjudged their future value on the market and should’ve bid more. Of course your lack of business acumen is the fault of the Democratic Party!

Anonymous said...

I have a quaint trailer park for sale in Canton. Has a hint of 3rd world to it with and without running water and sewerage. Bids begin soon. Please come by for an inspection. Serious, come by and see this prime real estate. More seriously, it is a crying shame what goes on up here.

Anonymous said...

Laws of nature…..Cause and effect…..Action, reaction.

Much too complicated for the indoctrinated to understand.

And while the indoctrinated were totally fine with home mortgages to borrowers that could not paid the loans back, then government bail outs for the super-rich banker’s that made the heads they win, tails the tax payer commoner loses bets, fake interest rates, PPP money to rich people with booming businesses that didn’t need it or deserve it (some got millions), stimulus checks, and the print, print, printing of $$$ from thin air…..

Those same indoctrinated fools then fail to understand why hedge funds are buying up their homes, why Bill Gates has bought so much farm land that he’s now the single largest owner of farm acreage in the USA (at prices that are not justifiable for farming, hint, hint), why the super wealthy elitites are buying up hard assets,

AND, why their cost of living is getting so much more expensive.

But hey, leftist professors don’t teach about this stuff, do they?

Anonymous said...

You jest. But in a Lil’ Tijuana like you describe, you can get some exotic dope, or get your own donkey show and maybe even a new kidney.

I am actually scares to see when the cartel really starts putting the screws to the local LEOs and you begin seeing them beheaded and hanging from the stack. We will all get punished.

Anonymous said...

I'm an unhinged boomer and I don't like to type in all caps. If I have to type in all caps then I'm a coming over there and it ain't going to be sunshine and lolly pops. So keep the caps down. Get it?

Anonymous said...

@3:48pm - Watch out, we got an internet badass in here!

Anonymous said...

Lots of opportunities in housing in areas that aren't "cool"... Raleigh, MS for example...but it's not too far from Laurel...where that home show has brought "cool" to a smaller sleepy town....

Anonymous said...


Damn Apple Ridge is empty. Lots of birthday bowling happened there. Took Karate there too. Bobby would cut my hair across the street. Now that building is gone. I miss South Jackson.

Anonymous said...

“You now have permanent capital competing with a young couple trying to buy a house,” . . . roughly one in every five houses sold is bought by someone who never moves in. “That’s going to make U.S. housing permanently more expensive”

Stated another way, financial speculators are sucking the value of the housing market, competing directly with individuals, and causing permanent damage. That's a real problem, which directly affects the real lives of a lot of real people.

When presented with this new information of a relatively new problem, many of us just jam it into our old ideological arguments and keep on fighting. No wonder nothing gets done until it becomes a crisis.

Anonymous said...

And like Faux Noooz Rupert Murdoch owns the Wall St Journal. Sean Hannity will soon indoctrinate his stooges to see the wisdom of WSJ's opinions.

Anonymous said...

@2:02 PM said “When presented with this new information of a relatively new problem, many of us just jam it into our old ideological arguments and keep on fighting. No wonder nothing gets done until it becomes a crisis.”

2:02 is correct and as stated beginning at 2:53 in the Youtube above, when it does become a crisis, “we live in this strange system where the same people who are called upon to fix things are actually ones that created the problem in the first place.”

Regarding the 2008 crises (referenced in the Youtube above that began with subprime loans to people that, shy of an event like winning a lottery, there would be absolutely no way for them to pay these loans back) some of the fixers were:

Former Goldman Sachs CEO and then George W. Bush Treasury Secretary Henry Paulson that made certain Goldman Sachs’ was bailed out creating the heads Goldman would have won, tails the tax payer lost disaster.

And, as was the case in this latest 2020 PPP scam with banker billionaires like Jamie Dimon leading the way, Paulson and his buds had the politicians (many if not most of which are clueless) over a barrel with the “this is what you better do or the country goes into a depression” threat.

More fixers after the 2008 crisis were:

Chris Dodd and Barney Frank, two of the loudest voices crying you are a racist when Republicans in congress tried to point out what was coming at FNMA and Freddie Mac (that ending up losing 47 billion in their single-family mortgage businesses). And how were Dodd and Frank rewarded? They get the job of “fixing things” with their Dodd-Frank Act that contains so much BS bureaucracy (that had absolutely nothing to do with creating the 2008 crises) it regulated many of the smaller banks and mortgage companies out of business (great for big banks though, right?).

Maxine Waters, maybe the absolute loudest voice crying you are a racist and prior to the 2008 melt down she literally stated “we do not have a crisis at Freddie Mac, and particularly Fannie Mae, under the outstanding leadership of Frank Raines.” And what does ole Maxine get for her colossal failure in “financial judgement?” She’s currently the chairwoman of the House “Financial” Services Committee (can-not make this stuff up).

But, at the end of the day the clueless politicians will continue to do what they do knowing that as long as they have an electorate dumbed down enough to believe, for example, that defunding and abolishing the police (over a minority of bad apples) in the poorest and highest crime areas of the country, will actually make things better, the problem creators will continue to fix the problems they created and the wealth gap will continue with the super-rich getting much wealthier while the poor, and especially the middle class get hammered with inflation/soaring home prices, etc.

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Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

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In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.

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If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

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