RFK Jr.: “BlackRock Is Robbing Americans of The Ability to Own Homes”…But I Can Stop Them
In recent years, the real estate market has become increasingly challenging for average Americans to navigate. Rising home prices, soaring mortgage rates, and limited inventory have made homeownership a distant dream for many. A prominent voice speaking out against the current state of affairs is Robert Kennedy Jr., a Democrat candidate for the Presidency. Kennedy Jr. claims that investment firms like BlackRock, State Street, and Vanguard are robbing Americans of the ability to purchase homes, exacerbating the housing crisis.
Robert Kennedy Jr. highlights the dominance of investment firms in the real estate market. According to Kennedy Jr., these companies, particularly BlackRock, State Street, and Vanguard, own a staggering 88 percent of the S&P 500. With their immense financial resources, these firms have ventured into the real estate sector, leveraging their capital to purchase homes with all-cash offers. This strategy often outbids average American homebuyers, further driving up home prices and exacerbating the affordability crisis.
Kennedy Jr. points out the alarming trend of skyrocketing home prices and rental rates. Over the past few years, the cost of the average home has surged from $250,000 to $400,000, an increase of 60 percent since 2019. This surge in home prices has been fueled by the aggressive purchasing strategies of investment firms like BlackRock. As a result, the average American homebuyer finds themselves unable to compete in the market, leading to a decline in homeownership rates.
The impact of rising home prices is not limited to potential homebuyers. Rental rates have also soared, with Americans now spending a third of their income on rent, the highest ratio since records were kept. This further exacerbates the housing crisis, as individuals and families struggle to find affordable housing options. Kennedy Jr. argues that investment firms, by driving up both home prices and rental rates, are effectively robbing Americans of their financial security and stability.
BlackRock, in particular, has come under scrutiny for its practices within the financial industry. A recent expose by James O’Keefe shed light on alleged corruption within the company. The undercover footage revealed a BlackRock recruiter, Serge Varlay, discussing the company’s influence and its desire to avoid public scrutiny. Varlay stated that financial institutions, including BlackRock, engage in buying off politicians, with US Senators being the most cost-effective targets. This revelation raises concerns about the undue influence these investment firms wield over policymakers and the potential impact on housing regulations and legislation.
Addressing the housing crisis and countering the alleged practices of investment firms like BlackRock requires a comprehensive approach. Robert Kennedy Jr. has proposed a plan to combat these issues and initiate a housing boom that benefits all Americans.
— Robert F. Kennedy Jr (@RobertKennedyJr) September 3, 2023
One possible solution is increased government intervention in the housing market. This could involve implementing stricter regulations on investment firms’ real estate activities, such as limiting the number of properties they can purchase or imposing higher taxes on real estate investments. Additionally, government initiatives to incentivize affordable housing development and provide subsidies for first-time homebuyers could help level the playing field and ensure greater access to homeownership.
Another approach is to prioritize affordable housing initiatives. This includes partnering with nonprofit organizations and community development corporations to build and maintain affordable housing units. Governments can provide funding and tax incentives to encourage the construction of affordable homes, ensuring that a portion of new developments is dedicated to affordable housing. By increasing the supply of affordable housing, the market becomes more balanced, enabling more Americans to find suitable and affordable housing options.
To address the rising mortgage rates, Kennedy Jr.’s plan could include advocating for stronger regulations on the mortgage industry. This includes ensuring transparency in lending practices, preventing predatory lending, and promoting fair lending standards. By creating a more stable and regulated mortgage market, homeowners can benefit from lower interest rates and more favorable loan terms, making homeownership more attainable.