No, Blackstone Didn’t “Buy 17,000 Houses” out from under Desperate Homebuyers. And BlackRock Didn’t “Buy a Whole Neighborhood.” But Built-to-Rent is a Huge Change, by Wolf Richter

You never know what you’ll find out if you go beyond Internet headlines and actually read the stories. From Wolf Richter at wolfstreet.com:

Internet BS made from twisted headlines is fun to spread. But reality is a lot more interesting.

The social media and comment sections, including the illustrious WOLF STREET comments, are afire again with another headline, based on a headline in the Wall Street Journal that is being twisted, contorted, and spread by people who refused to even read the first paragraph. The meme is that PE firm Blackstone Group bought 17,000 houses for $6 billion, outbidding regular people, and thereby making it impossible for regular people to buy those houses amid a red-hot housing market.

Alas, what gorgeous ridiculous internet BS! Blackstone didn’t go around the US grabbing 17,000 houses, outbidding regular mom-and-pop buyers with its $6 billion war chest. On the contrary.

Blackstone bought an entire company, Home Partners of America, that already owned 17,000 single-family houses. Home Partners buys houses and rents them to tenants with an option to buy at a preset price at any time with 30 days’ notice – the company is “committed to making homeownership a reality for more people,” it says.

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