One aspect accelerating the homelessness problem, not discussed enough, is corporations buying housing throughout America. The average homebuyer hasn’t a chance against the greed of a corporation outbidding every struggling American.
Since the housing crash of 2007, caused by the greed of banks, corporations have been buying houses at an alarming rate. (See N.Y. Post; How corporations are buying up houses) Additionally, you can find a neighborhood of books from authors who have studied the subject. Many studies show that corporate ownership of single-family housing has risen dramatically as hundreds of thousands of homes are removed from single-family ownership. ( See: The Decline in Owner-Occupied Single-Family Homes - Bloomberg )
Corporations larger than a family trust already own nineteen percent of housing, growing as fast as corporate greed can gobble. This corporate culture to squeeze as much money out of housing is fueling inflation and homelessness.
Corporations’ sole intent is to drive up profits. They have been driving up housing prices for over a decade by over-bidding all other buyers. They will then raise the rental fees as high as the market allows. When they own large swaths of homes in every town in America, they will set the rents to coincide with next year’s profit goals.
The actual cost to America is the loss of the American Dream. To avoid this, I suggest that America form a code of ethics around housing. Let’s separate housing from the market of goods in our society. Writing legislation won’t work because corporations already own our politicians. But possibly a movement within the soul of America, intending to correct the fateful track we are racing on. Let corporations gouge up the price of every other product, but let our society create a principle establishing a moral value where housing exists as a standard of ideals that shouldn’t be destroyed by corporate greed.
Corporate America is removing ‘free enterprise.’ from the market. The typical home seller, for many generations, has resupplied the housing market by selling to a buyer intending to live in the home, establishing a stable financial nest egg. That creates a fair market. Corporations, on the other hand, are outbidding every buyer in America as an investment, looking to establish a profit for generations to come. They only have the following quarterly report to think of. A corporate-owned home will never again be on the open market.
We are confronted with a moral dilemma concerning the future of America. Will future generations be able to get ahead by investing in their future, or will they work their entire adult lives only to make the next month’s rent payment?
At this time, I don’t want to open the door to the possibility of citizens going to work at the corporate work site, following their corporate-sided work rules, then heading home to a corporate-owned home, and having to follow the same unfair corporate-sided rules at home too. I imagine that one day, a tenant who is a corporate employee living in corporate housing will have their employee evaluation report considered as a continuation of their lease.
Another view of the dilemma is when a retirement fund manager has placed money into housing corporations to improve its return. Each recipient of the fund is culpable, as are the fund manager and the housing corporations sacrificing America’s future housing affordability only to ensure the stability of the retirement fund. Those who own homes now may feel safe, but when middle-class citizens are entirely forced out of the market, who will buy your home when you want to retire and downsize? It will be the corporation, but will they offer you a fair price? What will the rental fees be during your golden years if you plan to move into a retirement community owned by a corporation?
We must never forget that a corporation’s only concern is making another dollar. Corporations, by way of their property managers, who have a thumb on the scale, will raise the rent as high as possible. Additionally, a corporation can let a property go vacant for quite some time without hurting its bottom dollar.
Can we consider whether our grandchildren will have the ability to buy a home? Can we feel empathy for future generations of Americans?
The choice is here; do we want a strong corporate America or a robust American citizenry?