In recent years, Wall Street financiers have made significant purchases of rental housing across the United States, leading to rising costs that are out of reach for many Americans. Democratic senators, including Sen. Elizabeth Warren, are demanding more scrutiny of these transactions, particularly focusing on private equity firm KKR’s recent $2.1 billion purchase of 5,200 rental apartments. The senators are concerned about ensuring long-term tenants can stay in their homes and the potential for rent and fee hikes to generate profits.
Research shows that the number of renter households in the U.S. has been increasing, with rents rising significantly more than household incomes. Many financially vulnerable residents are being forced to cut back on essential needs like food and healthcare due to rising rent costs. Private equity firms like KKR are being blamed for contributing to these price hikes through large purchases of rental properties and apartment buildings, which often lead to reduced quality or higher prices.
Both Vice President Kamala Harris and Sen. JD Vance have raised concerns about big investment firms monopolizing the rental market, crowding out individual buyers, and increasing rents for tenants. Private equity firms currently own over 30,000 apartment complexes and almost 1.4 million units in the United States, leading to negative impacts on renters. Efforts are being made by senators to address these issues and hold private equity firms accountable for their practices in the rental housing market.
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