(01-25-2022, 09:58 PM)p_rushing Wrote: I said this a while ago. Blackrock is offering cash, over market value (20% or more sometimes) and pricing people out of buying the home. It's not just resells, it's new construction where they are buying most of the subdivision.

Why are they dumping cash into property? Who knows but they aren't holding them as investments as you know the market is going to crash. They aren't flipping either. They are buying to rent. Soon you won't be able to buy an existing home or build unless you already own the land in some places.

There has to be some plan or strategy for why they think it's a good move. Maybe market crash and hyper inflation so they dump cash for property. Maybe some government plan to buy land to kill subdivisions and force city living. Maybe some type of government guarantee rent payments.

Inflation reason makes sense but they are putting a ton of cash into it. I'm sure there are crazier thoughts on what the reasons are.

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All of those explanations are plausible, but to me it's nothing more than having nothing better to do with the money.  A new home should be rentable for at least 30 years, and 50 is not uncommon.  So, no matter what, this is an asset that produces revenue constantly and reliably.  The resale value might not go up, but at least the revenue comes in.  Taxes are very predictable in most states.  The only thing not predictable is the insurance and the actual rent price. 
In a healthy market, equities would be a significantly better investment, but this must not be a healthy market. Many public equities (like Netflix) don't produce revenue (dividends) at all anymore.

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