Is this really sustainable? What happens first: home values fall to match rents or do rents creep up to home values while home values stagnate?
Posted on 10/30/2023 4:29:34 PM PDT by millenial4freedom
The average monthly mortgage payment is a whopping 52% higher than the average monthly rent on a house or apartment — a ratio that hasn’t been this out of whack since before the 2008 housing crash, according to The Wall Street Journal.
(Excerpt) Read more at msn.com ...
can anyone who follows Blackrock closely tell us how many units they’ve bought in the last 5 years?
“Is this really sustainable? “
These are new mortgages which will follow values quickly while the rent value is a lagging indicator.
ALSO, the rent value is labeled MULTIFAMILY! Not single family homes.
It would drop(at least in the sf bay area) if the chinese and indian citizens would stop buying houses over asking price, and renting them out while they chill in their countries.
“can anyone who follows Blackrock closely tell us how many units they’ve bought in the last 5 years?”
Blackrock doesn’t buy single family homes.
I’m not much of a fan of his, but....
According to RFK, by 2030, if they continue to do what they’re doing, they’ll own 65% of single family homes.
I’m betting that there’s probably someone running for President that might think that’s odd.
But it sure as hell isn’t the guy in the White House now, nor one member of Congress that gives a sh*t.
https://dailycaller.com/2023/09/05/robert-f-kennedy-jr-blackrock-world-economic-forum/
RFK Jr. says BlackRock, Vanguard & State Street are robbing Americans of the ability to own homes https://www.youtube.com/watch?v=GKsSjDJJK5s
ok, thanks for the clarification.
Well, at least there are no more mean tweets
If you are paying HIGH RENT and you voted Democrat you are getting exactly what you deserve.
You pushing socialism now?
So let's say you are a landlord who took out a 3.5% fixed mortgage a few years ago. Chances are, you are not going to have to jack up the rent for your tenants, except for the normal increases when a lease is renewed.
It is only new homebuyers who are feeling the crunch. Yes, that will have ramifications over time. But current homeowners who bought when rates were low are sitting pretty and will be for a while, so long as they stay put.
When the monthly note exceeds rent payments for the same level of real estate, that is a flashing red warning sign that homes are way overvalued.
The rate of return for those who bought homes as investment properties is less than for T-bills. Which means there is a financial incentive to sell a lot of them. As soon as more inventory comes onto the market, prices will tank because at 8% and after the huge price run up of 2-3 years ago, demand is dead.
Third option is that inflation gradually declines allowing interest rates to moderate, making “new mortgages” less costly relative to rents.
“According to RFK, by 2030, if they continue to do what they’re doing, they’ll own 65% of single family homes.”
You really believe that ambulance chaser?
60% of mortgages are at or under 40%. IOW, 60% of potential inventory is off the market. Most won’t sell now and got < 4%, to double that. Putting the squeeze on upward price movement for the other 40%.
“It is only new homebuyers who are feeling the crunch.”
Chart is NEW mortgages.
“Third option is that inflation gradually declines allowing interest rates to moderate, making “new mortgages” less costly relative to rents.”
Yes. The data is NEW mortgages which are rate sensitive.
“Most won’t sell now ...”
I am locked in. Not only the mortgage but property taxes would increase.
You again? I thought you got run over by a Tesla or Rivian.
But, since you’re a moron...
https://slate.com/business/2021/06/blackrock-invitation-houses-investment-firms-real-estate.html ..... It’s not exactly accurate that investors are “buying every single-family house they can find,” as some have suggested. If that were true, their market share in the United States wouldn’t be a piddling 15 percent. They’re really buying up the stock of relatively inexpensive single-family homes built since the 1970s in growing metro areas.
https://www.cnn.com/2021/08/02/business/family-homes-wall-street/index.html
https://thefederalist.com/2021/06/11/what-happens-when-hedge-funds-buy-up-neighborhoods/
Now go watch videos of Musk talking nonsense about car batteries and leave the adults alone.
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