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BlackRock Is Not Buying Individual Houses In The U.S.

blackrock buying houses
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EDITOR'S NOTE:

Blackrock is accused of buying up residential homes and bidding up prices, making it impossible for regular folks like you and me to buy a home. It all started with a viral tweet that reads: “Blackrock is buying every single-family house they can find, paying 20-50% above asking price and outbidding normal home buyers. Why are corporations, pension funds, and property investment groups buying…” In short, the investment management firm is accused of distorting prices and locking-out American families from the real estate market. 

 

The problem is…none of it may be true, at least with regard to BlackRock. Sure, institutional purchases of residential homes are taking place. Wall Street is, as Tucker Carlson said in one of his Fox segments, creating a “serf class” of renters. Even BlackRock admits in their statement that “A number of other large asset managers and private equity firms are very active today in purchasing single-family residences.” But BlackRock may not be among the firms actively pursuing this strategy. And their statement of repudiation aims to set the record straight.

Our thought bubble: It’s important to be aware of Wall Street’s antics, especially when it aims to profit at the expense of regular Americans. But more importantly, we need to uphold the values of a “thinking” culture and not devolve into a “meme” culture. In other words, don’t be a sucker for memes whose truth you can’t validate.

Recently, BlackRock has been the subject of speculation, misperception, and even mistaken identity in media reports and on social media regarding our role in the U.S. housing market.

We want to make perfectly clear: BlackRock is not buying individual houses in the U.S.

A number of other large asset managers and private equity firms are very active today in purchasing single-family residences. BlackRock is sometimes confused with them. 

As a fiduciary asset manager, we invest and manage capital on behalf of our clients in a vast array of public and private U.S. real estate markets – but buying individual homes is not one of them.

Below are facts on how we DO participate in the U.S. real estate market. Combined, we are investing approximately $120 billion1 in the U.S. residential real estate market on behalf of our clients.

Providing capital for mortgages to help American families buy new homes

BlackRock is a significant investor in mortgage securities, helping make capital available to individuals and families seeking to purchase homes.

Providing capital for new housing construction

BlackRock is invested in several programs that are providing financing to build new homes and add to U.S. housing supply.

Most recently, we began investing in new construction, purpose-built for-rent housing developments that add supply to the market and address the increasing demand we see for this property type. Our focus is on building single-family rental housing that can be managed and operated similarly to multifamily properties with dedicated property management, leasing and amenities.

Other U.S. real estate investments

Additionally, BlackRock invests in multifamily properties, apartment complexes, and other residential real estate.

Bottom line: BlackRock is an active investor in the U.S. real estate market, but we are not among the institutional investors buying single-family homes.

Originally published by BlackRock.

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