Many of the world's largest investment firms have launched new funds over the past couple of years aimed at acquiring single family homes to use as rentals. This includes billionaire investor Jeff Bezos. He has recently backed a real estate company that is launching a new fund to acquire more single family homes across the united states. What does this mean for all of us? I will get more into detail later but to put it simply, these firms or individuals are depleting the already low inventory for all the homebuyers that are waiting on the sidelines. Jeff Bezos acquires $500 million worth of single family homes, driving up house prices even more. It's very distressing to say the least. They essentially want to have people renting forever. No homeownership to pass on to their children or grandchildren. I say we go back to ancient times and build our homes without regulations, this way we won't have to be indebted to some bank or billionaire for life. Right now, we see pending homes decline to a record low level, even worse than during the financial crisis. In October, US pending home sales fell 1.5%, putting sales down 6.6% over the last year. This also marks the 23rd straight decline in US pending home sales. To put this in perspective, pending home sales are more than 10% below what they were in 2010. They are also 3% below the pandemic low when the global economy was in a lockdown, putting mortgage demand at it's lowest since 1994. What these billionaires and corporations like Blackstone are doing is they are essentially pricing out everyone from the market and we are not having the same level of the playing field. Jeff Bezos new housing firm so far has only three hundred eighty eight homes in their portfolio, not very large right now but it potentially could evolve into something that's much larger.
We're not just talking about Jeff Bezos here. We've got some big-shot billionaire investors like Elon Musk, Bill Gates, and Mark Cuban. And guess what? They're all ditching shares to get their hands on rental properties and single-family homes. Now, why would they do that? Clearly, they're onto something that we're not seeing, right? It's starting to become crystal clear – we're heading straight into a mind-blowing real estate rug pull that will shake the middle class into a frenzy. Take Blackstone, for example. They just raised a mind-boggling $30 billion real estate fund. But where do you think they'll pour all that money? Mainly into rental housing and properties. That's been a chunk of their strategy all along. Let's throw it back to the great financial crisis of 2010 – they founded a company called "invitation homes" that snatched up 880,000 properties at dirt-cheap prices. And guess what? They're back at it, raising the largest real estate fund in American history. They're gunning for the American housing market, my friend. Only this time, they aren't interested in buying homes at the current sky-high prices. They're way too smart for that. They know regular folks can't afford to buy right now. Instead, they're looking ahead and anticipating a surge in distressed sellers. It's like a tidal wave headed our way. Even StarWood Capital is getting in on the action. They recently splurged big time and bought 6,400 multi-family homes and 180,000 single-family homes – worth a jaw-dropping $240 billion! They're ready to pounce on this real estate feast.
*Disclaimer: Neither this video, not any content produced on this channel should ever be considered investing advice or official financial advice. All content is made for entertainment and educational purposes.
