The rental housing market in the United States has seen a surge in purchases by Wall Street financiers, with private equity firms like KKR acquiring large numbers of rental properties. This has led to soaring rental costs, making it increasingly difficult for Americans to afford housing. Senators, including Elizabeth Warren, have raised concerns about these transactions and are demanding more transparency. The number of renter households in the US has been on the rise, while rents continue to increase at a faster pace than household incomes. Low-income workers are finding it difficult to afford rental homes, with many being priced out of the market. Private equity firms, using debt to buy rental properties, have been identified as one of the causes of rising rents and reduced quality of housing. This trend has caught the attention of policymakers, including Vice President Kamala Harris and Ohio Sen JD Vance, who have highlighted the issue of investment firms buying up rental properties. As private equity firms take over apartment complexes and single-family homes, they often raise rents, impose new fees, and neglect property maintenance, leading to a transfer of wealth from renters to wealthy investors. Recent research also shows that private equity firms are acquiring troubled mortgage loans, raising concerns about potential evictions of residents. The properties purchased by KKR in states like California, Florida, and Texas already have a large portion of apartment units owned by private equity, highlighting the need for increased scrutiny and regulation in the housing market.
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