Private equity firms are buying single detached homes and we are totally fudged.

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So I was reading on real estate pricing in our area and stumbled upon an article that claimed that large PE (private equity) firms are now entering residential housing market. I did not believe what is happening at all. I mean how could PE firms listed on top US exchanges be buying all these houses when government clearly claims there is shortage of housing, and foreign buyers are bad bad people buying our real estate.

And as I dug more into this mess, it is evident that some of the world largest PE firms are indeed buying single detached houses in sought after neighborhoods and renting them out to people. to name a couple Core development group and Blackrock.

In case you are wondering what other business these firms own, let’s start with old age homes. PE firms now own more than 80% of Old age homes in America.

These PE firms are almost always listed on major stock exchange which is why they have to show profits and revenues to keep the investors happy. It’s all about numbers, cost cutting, better margins and better revenues. To achieve this the firms simply take out a few healthy ingredients from people’s food and replace with cheap ingredient. They take away basic necessities and viola better…