LANDLORDS ARE DISPROPORTIONATELY INRICHED BY THE FINACIAL EXPLOITATION OF THE RENTER.
HOW INVESTMENT FIRMS CONTRIBUTE TO HOUSING UNAFFORDABILITY
HOW INVESTMENT FIRMS INFLUENCE HOUSING UNAFFORDABILITY.
Conversion of Affordable Housing into High-End Rentals
Many institutional investors buy up naturally occurring affordable housing (NOAHs)—older, lower-cost homes—and convert them into luxury rentals. This practice contributes to landlord exploitation by removing affordable options from the market and replacing them with units priced far above what working-class families can afford.
Market Power and Rent Inflation
Large firms often own thousands of units across cities. This scale gives them pricing power, allowing them to set rents higher than smaller landlords might. In some cases, they use algorithms to optimize rent increases across their portfolios, further driving up costs and undermining renters' rights.
• Displacement and Gentrification
When investors target lower-income neighborhoods for redevelopment, it can lead to gentrification. Long-term residents are priced out, and the community’s character shifts toward wealthier demographics, further exacerbating the crisis in affordable housing.
Reduced Homeownership Opportunities
By purchasing starter homes in mass, investment firms limit access to homeownership for first-time buyers. These homes are often turned into single-family rentals, locking families into renting cycles and preventing wealth-building through equity.
