As affordable housing continues to be a mounting problem in America, Robert F. Kennedy Jr. has issued a fair warning about the future of the real estate market. While some believe the problem has persisted due to inflation and the lack of supply financing resources, the presidential candidate is convinced that there is a bigger culprit that needs to be held accountable. Kennedy insists that big corporations are to blame for how impossible it has become for middle-class Americans to purchase a home. At a recent speaking engagement in Los Angeles, RFK said, “The real reason that housing has outpaced anything else is because there are three giant corporations: BlackRock, Vanguard, and State Street.”
He revealed that these three conglomerates currently own 88% of the S&P 500, which consists of the largest companies on the U.S. stock exchange. RFK stood firm in his conviction that these businesses have destroyed any hope of the average American being able to purchase a home. While speaking to the crowd, he shared a relatable anecdote that added further credence to his theory. “We all hear these stories of somebody, a friend or ourselves who tried to buy a home, was about to put the money down, sign the contract, go into escrow, and at the last minute, somebody comes in with a cash offer and takes it off the table,” he said.
RFK continued by suggesting that any of the three aforementioned corporations are behind the lucrative all-cash offers. “And you’re saying who is this with the cash offer? And so you look into it and it’s an LLC with an ambiguous name. And if you pull the strings and follow the breadcrumbs that leads you to BlackRock, State Street, and Vanguard,” he said. RFK may be onto something. According to him, corporations are able to get financing for real estate at a 30% lower rate than the wealthiest people in the nation. With that kind of advantage, it’s no wonder why most people haven’t been able to secure the purchase of a property in this economy.
RFK warned the crowd that if things don’t change now, not only will big businesses be taking homes from current buyers, but they will also be outbidding future generations of hopeful homebuyers. “So they can outbid you, and they can outbid your children. Our families are now competing against these companies, which are trying to buy every single-family home,” he said. Kennedy predicted that by 2030, giant corporations will own 60% of single-family homes in the United States. This would put dominant organizations in an even bigger position of power.
If elected president, RFK has vowed to take on big businesses such as BlackRock to ensure that they don’t own the entire real estate market. “So BlackRock wants to be everybody’s landlord and everybody’s neighbor, but I’m not going to let that happen,” he said. RFK revealed plans to introduce a federal program that “backs mortgages at 3%, financed by tax-free bonds.” This offer would be exclusive to American citizens and would not be available to corporations. “This will drop mortgage payments by more than $1,000 a month for a medium-priced home and allow your children to out-compete BlackRock in the market,” he affirmed.