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Big Banks Face Scrutiny Amid Democrat Push To Abolish Suburbs

Posted on Friday, October 1, 2021
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AMAC Exclusive – by Seamus Brennan

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The Democrats’ acceleration of their longstanding efforts to wipe out the suburbs and achieve the left’s ambition of eradicating zoning protections for single-family neighborhoods by passing such provisions as their nearly $5 trillion dollar package of budget and infrastructure bills is raising questions about recent real estate moves of big Wall Street banks and financial investment firms.

According to a Wall Street Journal report, investment giant BlackRock is purchasing entire neighborhoods’ worth of single-family homes, which they are then converting into rental structures. As a deep pocketed Fortune 500 company, BlackRock is able to outbid young middle- and working-class Americans who are looking to purchase homes for their families. “Yield-chasing investors are snapping up single-family houses to rent out or flip,” the Journal reported. “They are competing for houses with ordinary Americans, who are armed with the cheapest mortgage financing ever, and driving up home prices.”

This trend will make U.S. housing even more expensive, even as lumber shortages and rising material costs are already driving up construction costs—and possibly on a permanent basis. Incredibly, John Burns Real Estate Consulting (JBREC) estimates that approximately one out of every five houses sold “is bought by someone who never moves in.”

Houston has been a particular hotspot for investors who, according to estimates, account for 24 percent of all homes purchased in the city. The neighborhoods of Miami, Phoenix, and Las Vegas have also been subjected to similar investment strategies. As the Journal reports, JBREC tallied more than 200 companies that appear to be following this model, including house flippers like Outdoor Technologies Inc., investment firms like J.P. Morgan Asset Manager and BlackRock, and rental management companies like LGI Homes Inc.

The campaign to convert single-family homes into rental structures comes on the heels of several legislative initiatives in blue states to ban or greatly limit zoning for single-family homes, including Oregon and Minnesota in 2019. Just last month, the Democrat Governor of California Gavin Newsom signed a series of bills into law that essentially abolished single-family zoning in his state. The legislation includes provisions that permit as many as four housing units on a single-family lot and enable the government to construct buildings with up to 10 units. In the summer of 2019, Oregon became the first state to disallow single-family zoning, citing an alleged affordability crisis—a move that was quickly adopted by Minnesota and is almost certain to follow in other states in the months and years ahead.

To justify their anti-suburbia initiatives, Democrats have cited vague concerns of “systemic racism” and “environmental justice”. President Joe Biden has pushed to change federal zoning laws on the basis of “racial discrimination,” “the racial wealth gap,” and “racial injustice.”

The tendency of the Biden administration and many Democrats to hide behind the all-encompassing charge of systemic racism to jam through policies that would, in effect, urbanize and ultimately eradicate suburban America may not have any direct connection to private companies’ recent home-purchasing binges. But the possibility of cooperation between the two is becoming increasingly difficult to overlook, as many companies are now sounding like they have completely bought into the identity politics and social engineering pretensions of the hard progressive left. BlackRock announced plans earlier this year, for example, to conduct “racial audits” to investigate how its business ventures may be contributing to “racial inequities in the financial system.”

But what is unmistakable is that the left’s ruthless insistence on chipping away at single-family zoning is paving the way for major corporations and investment groups to come into American neighborhoods, purchase large swaths of the housing stock and convert them into rental units, and then wait until the Democrats get rid of single-family zoning in that jurisdiction.  The inevitable result is to drive up housing costs and stop working class families from buying new homes. Should Democrats’ legislative efforts to phase out single-family zoning at the state and federal levels continue to move forward apace with the activity of large financial asset managers’ making speculative purchases of whole-scale neighborhoods, America could very well be turned into a nation of renters.

Despite Democrats’ insistence that their war on the suburbs derives from a need to combat racism and stave off environmental catastrophe, the fact remains that most Americans of every background aspire to live in the suburbs of single-family neighborhoods. They simply want to live and raise their families in a house rather than in a rental or apartment unit. Owning property is the quintessential American freedom that has made our country unique among the nations of the world. By depriving working class Americans of their ability to own their home, Democrats are crushing the American Dream for millions of families. If the big banks continue to help the Democrats in that mission, Republicans will have no choice but to be the party that champions restoring the dream of homeownership for every American.

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Becky
Becky
2 years ago

The demonRat’s Communist dream of forcing all but the ‘elite’ (themselves) into poverty and brokenness continues unabated.
And it will continue until we end THEM.
They have been continuously attacking each and everyone of our American institutions since 1960.
It’s time to stop them. By whatever manner works.

Philip Hammersley
Philip Hammersley
2 years ago

Middle-class blacks. Hispanics, and Asians all moved to the suburbs to escape the horrible Marxist policies of the big-city DIMMs. The suburbs are NOT racist! Just another POWER GRAB by the “elites.”

Mandy
Mandy
2 years ago

Another step towards instituting Communism into America. No homeownership means the “government” will own and direct Americans as to how we shall live under “them”.

Homeownership is one of the foundations of America. It is one of the purchases that increases a family’s wealth and provides security as your rent can’t be raised when you have a mortgage.

I hope all Americans will fight this to show Americans they can’t take us down without a fight for our freedoms. We must stand against this.

Joan
Joan
2 years ago

Lets start with the houses of the rich, and Congressmen, and people with four or five homes.

J. Farley
J. Farley
2 years ago

This is the Democrat’s way to make America, a Crap Hole, Country. They won’t stop until they have reached that Goal.

PaulE
PaulE
2 years ago

A similar story with much more detail came out over a month ago in the WSJ. This one here just lacks a lot of the detail around the economics and long-term societal shifts the proposed policies would trigger. This article is more of the “Republicans will have no choice but to be the party that champions restoring the dream of homeownership for every American” that swoop in to save the day. The problem with that is that it never happens. Congressional Republicans have a long history of talking a good game, at re-election time, but doing precious little to push back against bad Democrat policies being proposed or enacted. That takes a strong Republican President to actually get things done. Aside from Reagan and Trump, those are very few and far between. So just don’t buy the BS that Republicans in Congress are going to write a few letters to several executive branch agencies and stop all this planned upheaval dead in its tracks. If you want to stop the planned transformation of your suburbs into envisioned clones of NYC, Detroit, Baltimore and other Democrat enclaves, in the name of social and economic justice, the time is NOW. Because once this ball of change gets rolling, it will be very, very hard to stop.

Yes, Blackrock and other large investment firms have gotten into buying up residential properties in bulk in the growing areas of the real estate market nation-wide (mostly the lower cost red states and a few select dying areas such as NYC, San Francisco, etc.), because they recognize the massive shift that will be continuing as people flee the hyper taxation and regulated high cost blue states for the more reasonably priced and better managed red states. Washington sees all this too and they intend to ensure no one escapes the Democrat party agenda, if possible. That includes leveraging their pressure over the nation’s banks to ensure things go as planned.

Overall, this article should hopefully serve as a wake up call for those that foolishly think they because they already live in a nice, lower cost, better managed red state suburb, that they don’t have to worry about what the Democrats do in Washington. Yes you do.

Karole
Karole
2 years ago

I do not trust Rinos and there are too many of them. That’s one of the reasons Trump ran into so much difficulty trying to pass his agenda. The Rinos and DC in general have too much to lose monetarily to let the proverbial “cat out of the bag”. It makes perfect sense why so many legislators eventually become lobbyists! It’s all about money.

Stephen Lykins
Stephen Lykins
2 years ago

Let these arseholes subdivide their mansions FIRST!

Grace
Grace
2 years ago

Two institutions that will disappear if/when Democrat Socialists take over the Republic and we become a one party gulag
1- The middle class will be replaced by a huge working class and a ruling party of Elites protected by a well paid Woke armed army/police force.
2-Citizens will be forbidden to own property.
I suggest everyone tell their liberal friends to check out Venezuela. That’s Americas future . A ca will be old and a novelty. Gas will cost a weeks salary.

CoNMTX
CoNMTX
2 years ago

I’ve been to Russia. I saw blocks of 4-story apartment buildings that housed as many as 4500 people. This is what the globalists want for America’s future. When people don’t own anything and they are crammed into these apartment blocks, they are much easier to control and track. The lies being told by the left about how great the future will be, is pure fertilizer. Freedom is out and control is in. These aren’t “bad” people. They are evil, satanic people who care nothing about humanity of any race or ethnic group. They want to reduce the population of the earth, especially minorities.

Tim Toroian
Tim Toroian
2 years ago

The burbs will just have to move to a higher altitude where city people wouldn’t want to live.
It’s part of the communist crap of making everybody the same, miserable.

Granny39
Granny39
2 years ago

Demonrats want to make sure all their illegal aliens have a place to live. They are destroying our country.

Larry W.
Larry W.
2 years ago

Seems like the Democrats will never run out of ideas to tear down anything that looks like America and change our Country into who knows what. Taking away the American Dream of home ownership (except for the wealthy like Biden) and blaming it on racism is the height of arrogance. This has nothing to do with race, its all about money and control.

Carol
Carol
2 years ago

Rent on these homes is sky high too! I have many friends who cannot afford to buy a home and they are forced to rent but the rent is so high they have to have roommates to be able to afford it. What the leftist are doing is using the private sector companies to do their dirty work. With these companies like Big Tech and now Rental working with leftist, all Americans will be beholden to whatever the leftist want! You disagree with them, they silence you, throw you out of your home, deny you a job, bank account and medical needs as well as food? Control is the game with these leftists and they won’t stop till everyone that isn’t used by them will be under their control! This won’t end well for anyone!

Rik
Rik
2 years ago

Our Comrade Democratic Party KNOWS that 90% of Suburbs ARE REPUBLICAN so you shouldn’t be surprised they want to convert them to “rentals” as opposed to single family ownership. CAPITALISM IS NOT JUST UNDER ATTACK, THEY WANT TO COMPLETELY DESTROY CAPITALISM!

Janet
Janet
2 years ago

The sellers need to start to look at what is happening and decline offers by big companies and sell to the more reasonable offers made by individual families. That is the only way to stop this from continuing and sellers need to not let greed guide them.

Judy
Judy
2 years ago

This is nothing more than turning a free society into a Socialized utopia. Most rental establishments welcome anybody who can meet their monetary housing requirements. That usually means several tenants per unit to qualify for renting the units. This NEVER works! People never get along well enough over the period of time the rental agreement is in affect. Also what I have noticed from my own experience in apartment renting, is the number of dysfunctional families in such close proximity to others, and children having easy access to lethal drugs. The way now that the Socialist Marxist Party has created such division in this country, that what will occur is the Left discriminating against White’s and Christians only allowing those who are depraved and living lifestyles of perversion in these rental cities, which will become garbage and rat infested slums in no time. Chaos and murder will be commonplace just like in Chicago Illinois. Like it states in the Holy Scriptures, ‘the nation that forgets God and is fit for His destruction will become as Sodom and Gomorrah.
WE…NEED…GOD!!!

Momcat
Momcat
2 years ago

Have you seen the new housing developments in Texas? postage stamp yards, so close to your neighbor you can hear them snore, no parking, high HOA costs, onerous rules & regs, etc. Tiny pools, small playgrounds, everyone crammed on top of each other…. Sickening.

Mike Ecko
Mike Ecko
2 years ago

We’re starting to see Fascism germinate and take root here in the US. Millennials and GenZ think that Fascism is anything they disagree with, but in reality it’s corporations climbing in bed with government, ostensibly for their own financial survival, but really for the wealth and power of the ruling elites. Brennan’s article citing BlackRock’s racial audit is one more example of corporate America embracing ESG policies (like Coke did) to show government that they have a right to exist. And not coincidentally, greasing the skids for them to drive up prices (and profits) to the detriment of the common citizen. It’s not Marxism (though elements of Marxist philosophy are at work) that is the greatest threat to American liberty, it’s the ascendance of elitism. And it’s picking up speed.

Garye
Garye
2 years ago

Just more garbage from the failed ,useless democrat party and their unrelenting attack on America and its Citizens.
Who do these LOSERS think they are????
2022,2024 and beyond We the People need to remove them all and purge the communist democrat party from America!

Lynn
Lynn
2 years ago

Are these dem dictators going to have their gated compounds and private properties subdivided?

No Name
No Name
2 years ago

Beware of text msgs from unidentified senders who are trying to buy your house!

edgar fletcher
edgar fletcher
2 years ago

The dems just don’t quit. They will not rest until every vestige of Americana is destroyed. If you voted for Biden you are now my enemy.

Max
Max
2 years ago

This situation is nothing new, it has been happening in the major cities in Ohio for the past 6 years. for example, a city in central Ohio forced 8 residents to sell their homes and built a huge 650 unit complex in its place and in the last 2 years, just around the corner, 3 business building were demolished and a 500 unit complex was built in its place. Sadly, greed has taken over and the rich are getting richer.

Shirley Gerace
Shirley Gerace
2 years ago

I have no problem with abolishing single family zoning laws…as long as we start with Pelosi’s neighborhood, for example. The uber rich have the biggest lots. We could erect a lot of multi-family structures on them. Works for me. Just sayin’.

ShellzNcheez
ShellzNcheez
2 years ago

This has been going on in FL for many years. The suburbs are all but gone here. Developers started snapping up homes in my mother’s neighborhood and renting them out at much higher rates. But the tenants soon trashed the neighborhood. One rented home (zero lot lines) had shirtless tenants hanging out in the front yard, which soon became a literal dirt pit. Some people moved in next to my mom (renters). The woman, who constantly came and went, running over the grass each time, routinely cleaned out her car by raking it all out on to the ground. Finally, my mom had to move when things became increasingly unsafe. The last time I drove through that neighborhood it looked like a 3rd world country, all within just 5 yrs.

Jeff
Jeff
2 years ago

The irony is this is happening just as minorities are making inroads into the very suburbs the Demons want to destroy.

Judy
Judy
2 years ago

What is being done by our government to protect citizens from this Socialist movement to take out homes, etc away from us!!

Judy Fuchs
Judy Fuchs
2 years ago

The sooner Democrats are out of office the better off the country will be. They constantly bring up racial matters but what they are doing makes it worse. Are they Democrats or Socialists!!!

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