It’s Not a Housing Boom. It’s a Land Grab

[Fire Walk With Me]

Last edited Mon Jul 29, 2013, 05:51 AM - Edit history (1)

http://colorlines.com/archives/2013/05/the_dangerous_new_housing_boom.html

Many in the political and financial class are holding up this relatively positive new housing data as proof that the country has reached an economic oasis. And at first blush, the situation can be construed to be positive. The value of the U.S. housing market has climbed back to $16 trillion, exactly where it was before the economic crisis. Home prices and permits for new construction are up by double digits nationwide.

But rather than an oasis, these new gains might be an economic mirage. The reality of the current real estate renaissance is that the rich and those on Wall Street are raking in the cash while large segments of the population—especially historically marginalized communities—remain stuck in a downward, alternate housing reality.

Generally, housing recoveries are fueled by millions of Americans with new jobs, higher wages, available credit from banks and overall confidence that things will get better. But the real economy that most people live in day-to-day is too weak for all of that. Jobs are in short supply, wages are at historic lows and credit for middle and working class Americans is tight. With their economic ladder into homeownership taken away, many Americans can no longer participate in the housing market.

snip

Just in the last 12 months, Wall Street’s Blackstone Group has raised $8 billlion to buy up homes on Main Street. Following suit, according to The New Republic, JP Morgan Chase—the nation’s largest bank—has organized a fund to purchase 5,000 single-family homes in states with some of the most depressed real estate prices. As I wrote last year, a former Morgan Stanley housing strategist left that bank, organized a billion dollars, and is purchasing up to 10,000 homes with these new resources.

(More at the link. Via Occupy Fights Foreclosures. Cross-posted from Occupy Underground.)

(One of the three leaked Citigroup Plutonomy memos, "The Plutonomy Symposium: Rising Tides Lifting Yachts", stated that the main asset of the bottom 80% of income earners in America is their home.)

[Starry Messenger]

1. k&r

[truedelphi]

2. Yet our "leaders" are excitely pointing out how the housing

Prices are increasing again, and all is returning back to normal.

If by normal, they mean France in 1779, I guess they are right.

[progressoid]

3. Rec!

[handmade34]

4. yup n/t

[djean111]

5. Yep.

I have gotten a Blackstone-initiated offer, and I was told at an HOA meeting that my subdivision (Tampa area) is now 10% rental properties and rising. Same for other developments around here.
We successfully beat back a proposal to shift HOA oversight to a state-created firm - those charge high fees and have Draconian penalties.

[Fire Walk With Me]

10. Glad you beat them off with a hopefully heavy club. We are being turned into a nation of renters.

[Ford_Prefect]

6. One more story of the "great recession" MSM is too distracted to see.

[geckosfeet]

7. Wealth redistribution from the bottom up. Where is the outrage?

Oh wait - the "MSM class" that make $100,000+ a year is cashing in. Cheap vacation homes. Cheap rental properties. Cheap cottages in rural (name a state) for get aways and rentals. Not to mention that they have all refi'd into 3.5% mortgages on their main home.

This is how wealth redistribution works in America. Fabricated crises that force the poor and disadvantaged to lose their shirts, then the wealthy cash in. Bottom up wealth redistribution - the rich mans wet dream.

It's the new American way.

[Madmiddle]

8. Bogus

paper work will acompany these land grabs, and there'll be know guarantee that when a family buys or rents one of these homes, with their bogus paper, that banks won't treat these families like the banks have been treating people and getting away with it. Government is fucking this country. Especially asshole republicans. Rich people are getting away with murder.

[Madmiddle]

9. Bogus land grabs.

Bogus paper work. Bogus all the way around. Stolen property will only turn this country into something that only riots and murder can change. And banks are getting away with this shit thanks to republicans.

[Civilization2]

11. History cycling, the Great Depression made some of the current 1%'s fortunes,. happening again!

Each time history repeats, the price goes up.

[Fire Walk With Me]

12. Kick

[Mnemosyne]

13. Wonder who they will rent to with low wages and few jobs? Criminals. nt

[fadedrose]

14. Buy cheap, sell or rent high

Land barons start out this way....if only they knew where a main highway was going thru a property!!

[Fire Walk With Me]

15. Kick