Why is BlackRock Buying Up Single-Family Homes? A Look At the Hidden Truth — New Local Realty (2024)

FAQs

Why is BlackRock buying all the houses? ›

The company can build equity.

If the company has borrowed money to purchase the house, it can build equity over time, essentially increasing the percentage of the home it owns outright and can then borrow against later on.

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.

BLACKROCK AND SINGLE-FAMILY HOMES

Invitation Homes, for example, has approximately 80,000 homes for lease across the country and is the largest landlord for single-family homes in the United States (here) (here).

Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 4.48MM shares of Ares Commercial Real Estate Corp (ACRE).

Invitation Homes is the largest single owner of single-family rental homes in the United States, managing more than 80,000 homes as of 2021.

BlackRock owns around $60 billion in real estate assets. The value of the housing market in the United States is more like $36 trillion.

BlackRock was founded in 1988 by Larry Fink, Robert S. Kapito, Susan Wagner, Barbara Novick, Ben Golub, Hugh Frater, Ralph Schlosstein, and Keith Anderson to provide institutional clients with asset management services from a risk management perspective.

ownership in AMH / American Homes 4 Rent - Class A. 2023-02-01 - BlackRock Inc. has filed an SC 13G/A form with the Securities and Exchange Commission (SEC) disclosing ownership of 23,468,809 shares of American Homes 4 Rent - Class A (US:AMH). This represents 6.7 percent ownership of the company.

Fink is Chairman and Chief Executive Officer of BlackRock. He and seven partners founded BlackRock in 1988, and under his leadership, the firm has grown into a global leader in investment and technology solutions.

What family owns BlackRock? ›

Reflects change since 5 pm ET of prior trading day. Larry Fink is the founder, CEO and chairman of powerhouse investment management firm BlackRock, one of the world's largest asset managers. He and seven partners founded BlackRock in 1988.

John Malone is the largest private landowner in the United States. Malone made his fortune as a media tycoon, building the company Tele-Communications, Inc, or TCI, and acting as its CEO before selling it to AT&T for $50 billion in 1999.

BlackRock is a top shareholder across a wide range of global industries that include oil and gas, technology, retail, big banks, healthcare, weapons manufacturing, and much more. All this makes BlackRock one of the most powerful corporate actors on the planet, whose influence touches every aspect of our daily lives.

Laurence D. Fink is the CEO and co-founder of BlackRock. Along with seven colleagues, he started the company. As of 31 January 2023, he owned 520,126 making him the biggest individual shareholder.

While BlackRock does own non-voting shares in Fox Corporation, it doesn't have any in Dominion Voting Systems, both the investment firm and the voting machine company confirmed.

1. The One, Los Angeles, California | Most Expensive Houses. The One, which took eight years to create, has surpassed all other pricey mansions in the US to claim the top rank. Nile Niami's modern masterpiece, this private mansion is situated on a five-acre site in Bel Air, Los Angeles, California.

“The One” is the most expensive house in the US

Located in the Bel-Air neighborhood of Los Angeles, “The One” is on the market with a $295 million asking price. This 105,000-square-foot megamansion is the most expensive home ever.

Only one state—New York—has a majority of its housing in the form of multi-family units, with only 46.6% single-family units. In contrast, more than half of all states have 70% or more single-family units, led by Indiana and Kansas at 78.5% apiece.

As of 31 December 2020, the Official Institutions Group has $579bn in assets under management (AUM) on behalf of 109 clients globally. This includes: 45 Central Banks. 19 National Pension Funds.

1 BlackRock derives the majority of its revenue from investment advisory and administrative fees charged to its clients. Among BlackRock's major competitors are The Vanguard Group, State Street Corp. (STT), and T. Rowe Price Group Inc.

How many homes did BlackRock buy? ›

Of those 15 million single-family rentals, institutional investors own about 300,000; most of the rest are owned by individual landlords. Of that 300,000, the real-estate rental company Invitation Homes—in which BlackRock is an investor—owns about 80,000.

He grew up one of three children in a Jewish family in Van Nuys, California, where his mother Lila (1930-2012) was an English professor and his father Frederick (1925-2013) owned a shoe store.

Learn more about the subscription offers. Already a subscriber? New York-based BlackRock is the first foreign-owned company allowed by Beijing to operate a wholly-owned business in China's burgeoning mutual fund industry.

Hedge funds don't have many shares in Pfizer. The Vanguard Group, Inc. is currently the largest shareholder, with 8.9% of shares outstanding. With 7.8% and 5.7% of the shares outstanding respectively, BlackRock, Inc. and Capital Research and Management Company are the second and third largest shareholders.

In the United States, the majority of housing units are single-family houses – about 82 million out of the total 129 million occupied units in 2021. These homes are mostly owner-occupied, but a small share is rented.

According to data reported by the PEW Trust and originally gathered by CoreLogic, as of 2022, investment companies own about one fourth of all single-family homes. Last year, investor purchases accounted for 22% of American homes sold. This is significantly down from the 80% number in 2020-2021, why is this?

Large institutions owned roughly 5% of the 14 million single-family rentals nationally in early 2022, according to analysts.

Among other institutional holders, BLK owns about 7.68% of Alphabet's shares, according to CNN Money. The iShares Core S&P 500 Index (IVV) is BlackRock's largest ETF, holding an impressive $304 billion in assets under management.

Does BlackRock own Amazon? ›

The top three individual shareholders include Jeff Bezos, Andrew Jassy, and Douglas Herrington. Amazon's top three institutional shareholders are Vanguard, Blackrock, and State Street.

BlackRock is also the sole shareholder and owner of shares in the four largest Australian banks. The company has hands-on everything. The German postal system, Commerzbank, and Deutsche Bank in Germany, followed by Lloyds Bank in the UK, and BlackRock is a stakeholder in all of them.

BlackRock is one of the world's leading providers of investment, advisory and risk management solutions. We are a fiduciary to our clients. We're investing for the future on behalf of our clients, inspiring our employees, and supporting our local communities.

BlackRock, Inc. is owned by Rockefeller Capital Management L.P. for $76.56 million (NYSE:BLK)

Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 110.13MM shares of PepsiCo, Inc. (PEP).

BlackRock and Vanguard AUM is $8.6 & $8.1 trillion, respectively. In total, they both own/invested in 1,600 U.S. companies(Reuters:2022). BlackRock's secret weapon, an advanced trading algorithm called Aladdin(Asset, Liability, Debt and Derivative Investment Network) has been shaping global markets for decades.

Investors piled into the housing market in 2021 due to rock-bottom mortgage rates and surging housing demand, and are now retreating amid projections that home prices have room to fall.

1. EMMERSON FAMILY. The nation's largest private landowners, California's Emmerson family, are a prime example of this trend. Through their Sierra Pacific Industries, the Emmersons increased their landholdings by more than 100 square miles to over 2.4 million acres.

The 2022 Land Report 100, compiled each year by The Land Report magazine, released its annual list of landowners who own the most acres in the United States. The nation's largest private landowners are the Emmerson family in California who own over 2.4 million acres.

BlackRock, Inc., holds 3.60% of Walmart shares, worth about $13.6 billion. BlackRock, Inc., is a multinational investment company in New York City. It is the largest asset manager in the world, with about $10 trillion worth of assets as of January 2022.

Does BlackRock own Tesla? ›

Elon Musk now owns less stock in Tesla, the EV maker he founded, than America's "Big Three" passive-investing funds have, the Financial Times has reported. The combined holdings of the index fund industry's three giants — BlackRock, Vanguard and State Street — make up a 13.58% stake in Tesla, it found.

Here is a list of the top companies that are stockholders in BlackRock and their stake percentages: The Vanguard Group, Inc. - 8.1%

BlackRock, Inc. is a publicly owned investment manager.

We note that hedge funds don't have a meaningful investment in Walt Disney. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 8.0% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 6.6% of common stock, and State Street Global Advisors, Inc.

Vanguard isn't owned by shareholders. It's owned by the people who invest in our funds. Our owners have access to personalized financial advice, high-quality investments, retirement tools, and relevant market insights that help them build a future for those they love. That's the Value of Ownership.

Together, BlackRock and Vanguard own 18% of Fox, 16% of CBS, 13% of Comast — which owns NBC, MSNBC, CNBC, and the Sky media group, 12% of CNN, and 12% of Disney — which owns a number of subsidiaries.

Spokesperson Christopher Beattie said via email, “Contrary to some speculation and misperception, BlackRock does not purchase individual homes in the U.S.” He provided a statement the company circulated to address growing concern about its real estate goals.

BlackRock's top three holdings are Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN). BLK owns $141 billion of AAPL stock, $120.8 billion of MSFT, and $65.8 billion of AMZN.

Clark County-based Nylund Homes Inc. was responsible for the largest share of purchases, buying 23 homes since 2020.

What is the oldest house in Clark County? ›

The Covington House cabin, which is the oldest (domestic dwelling/home) privately built structure, is also the oldest school building in addition to it being the oldest boarding school built in Clark County, Washington.

According to the Clark County Assessor's Office, the eight-bedroom property sold for $17.5 million, making it the most expensive home ever sold in Las Vegas. (The record was previously held by a home that sold in 2007 for almost $17.4 million.)

So, which cities are Angelenos now flocking to the most? Las Vegas and San Diego, according to Redfin data. As mortgage rates and home prices continue skyrocketing, nearly one-quarter of homebuyers nationwide looked to move to a different metro area, marking a record high, Redfin reported.