{"id":4057,"date":"2024-05-17T07:29:52","date_gmt":"2024-05-17T11:29:52","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=4057"},"modified":"2024-06-16T10:10:43","modified_gmt":"2024-06-16T14:10:43","slug":"we-all-deserve-a-home-but-corporations-outbid-some-of-our-friends","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/we-all-deserve-a-home-but-corporations-outbid-some-of-our-friends\/","title":{"rendered":"We All Deserve a Home, But Corporations Outbid Some of Our Friends."},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Corporate buyers are snapping up residential properties in Massachusetts and pushing out long-time residents, according to a report by the news outlet 25 Investigates<\/em>. These investment companies form a complex network, making it nearly impossible for individuals and towns to hold them accountable.<\/p>\n\n\n\n\n\n\n\n

Priced Out, Pressed Out: \u201cInvestors Are Squeezing Out Everybody\u201d<\/h2>\n\n\n\n

The investigative reporters interviewed seniors and struggling parents who\u2019ve been priced out of their homes, with rents well above $2K in some complexes.<\/p>\n\n\n\n

Alex Pratt, the deputy director of housing and community development for the Boston suburb of Malden, told the news team: \u201cInvestors are squeezing out everybody.\u201d<\/p>\n\n\n\n

The basic equation is simple. When companies buy up home properties, they hoard supply. That can make pricey housing markets pricier still. And the corporations buy up homes typically seek profits for their shareholders in the 15% range within a five-year time span. They don\u2019t even need to fill the homes to profit from the appreciation of property values.<\/p>\n\n\n\n

As for the houses they turn into rentals, profit-making comes down to charging a variety of fees, while keeping maintenance and overhead costs as low as possible. Needless to say, this is not such a profitable concept for the people who end up renting the corporate-owned housing.<\/p>\n\n\n\n

We Can\u2019t Afford to Buy, Say Four in 10 Gen Xers<\/h2>\n\n\n\n

Today, four out of ten renters say they don\u2019t see themselves ever acquiring a deed to a home of their own. The same share of GenXers \u2014 40% \u2014 feel permanently sidelined.<\/p>\n\n\n\n

Rising home prices and mortgage rates are making their dreams unreachable. Many say they can\u2019t see themselves saving up the money they\u2019d need for a down payment on a home.<\/p>\n\n\n\n

The <\/strong><\/em>median down payment for U.S. homebuyers<\/em><\/strong><\/a> has just passed the $55K mark.<\/strong><\/em><\/pre>\n\n\n\n
This isn\u2019t getting better. The number of people who feel left out is increasing year-over-year. And no wonder. Listing prices have shot up another 7% in the past year. The cost of making monthly payments on mortgages is up more than 10%. Whose monthly earnings are up by that much?<\/p>\n\n\n\n
Meanwhile, renters are sending ever larger checks to their landlords. The median U.S. rental home is now listed for about $2,000 a month.<\/p>\n\n\n\n
Janet Yellen Can Confirm: For Hopeful Home Buyers, Success Is \u201cAlmost Impossible\u201d<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n
The U.S. Treasury Secretary, Janet Yellen, recently testified before Congress about housing affordability. Yellen noted that many people financed or refinanced homes in 2020-2022, when mortgage rates were irresistibly low. Not wanting to give up their rock-bottom rates, many of these same people have had no incentive to sell. They\u2019ve just held onto their deeds. Understandably.<\/p>\n\n\n\n
Meanwhile, Yellen said, finding attractive listings and acquiring their own deeds has become \u201calmost impossible for first-time buyers.\u201d <\/p>\n\n\n\n
So the Biden administration wants Congress to greenlight a set of tax credits. They\u2019d be designed to:<\/p>\n\n\n\n