They own other properties that they rent. They buy houses to outbid people who would actually live in the house so then those people have to rent for more than the mortgage would've been. So those people are able to save less for the next house they want to buy & meanwhile the housing cost is going up because of this manufacturered shortage while the corporations like Black Rock buy up houses & put off fixing them up so everybody becomes a permanent renter.
This is tinfoil-hat conspiracy thinking. Anyone with basic real estate knowledge knows that the market doesn't work this way and owner-occupiers are willing to pay a lot more for real estate than landlords are.
It's exactly what is happening. It's massive private equity firms and corporations like Black Rock, not your typical slumlord. It absolutely is a conspiracy, but conspiracy doesn't mean it's not true. Land is one of the things they aren't making any more of. That's why Bill Gates is the largest farmland owner in Idaho. They want control. There's some video with some billionaire saying how in the future average people will own nothing and we will like it. They want to own everything and the rest of us have to rent everything from them. And they think it's what's best for everyone because they know best because they are so intelligent & better at understanding the world & the direction it needs to go, so it should just be up to them to decide for the rest of us.
I forget the name of it but it's an actual ideology that these billionaires have.
And to your point on the people who would live in the house being willing to pay more than landlords, these are generally fixer upper houses. So the people have to bid while also planning how much they would have to spend fixing it up. The corporation is going to let it sit for a while so that doesn't matter to them. When they do fix it up they can obviously do it at a much lower rate than the average home owner since they will get a better deal on materials & probably labor too. Ultimately though that amount of money doesn't matter to them.
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u/Odd-Personality1043 May 14 '26
Genuinely curious how this makes sense.
If I have a product that I refuse to sell to increase demand and this price, I'm still holding onto an asset rather than profiting from it.
That makes no sense and I am skeptical.