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Are we heading towards a social setting where most families will live in apartments owned by major investment groups, or will the average family continue to own their own home?


                                       ** Warning:  Hard Core Real Estate Talk Ahead **

An interesting article by William Johnson is food for thought.  William's post, What's Happening in the San Diego Housing Market?, about San Diego housing is reflective of what's happened across the nation as federal and local governments yield to pressure from the investment community to use the power of the permitting process to reduce construction of single family homes (detached and attached) and encourage construction of multi-family housing (rental units). 

AS THE OBAMA ADMINISTRATION PROPOSES to reduce federal aid to home buyers and give more help to renters (or rental unit developers), the percentage of home owners (now about 65%) may decline and the percentage of renters (now about 35%) may increase dramatically.  Government policy steers social results through the tax code and departments of government housing policies.

INVESTORS KNOW HOW TO GET HELP FOR A CAUSE FROM POLITICIANS, PACS.  The average US citizen does not make political contributions.  Groups of individuals, however, do.  Further, businesses and business groups form Political Action Committees that aggregate individual contributions to direct large amounts of money to friendly politicians.  

IS YOUR HOME OWNED BY YOU OR BY AN INVESTMENT GROUP?  Apartment investment, construction and management is BIG BUSINESS.  Most large apartment complexes are owned by groups of investors or owners of stock in a Real Estate Investment Trust (REIT).  

WHAT DOES THE RENTAL CONSUMER ASK FOR?  Funny thing, renters with whom I speak, either short term or long term renters, still want to rent and live in housing in the following order:

1.  A single family home (detached).
2.  A single family home (attached townhome)
3.  A condominium home.

Will the American family live in rental units owned by investors?  Or, will they live in their own homes??

Apartment building  Single Family Home

SOCIAL ENGINEERING AT WORK?  TAX LAWS ARE THE 2X4 used by government to achieve desired social result.

From the National Association of Home Builders - February 16, 2011 -

Nationwide housing starts rose 14.6 percent to a seasonally adjusted annual rate of 596,000 units in January, according to figures released by the U.S. Commerce Department today. The gain was entirely due to a 77.7 percent increase in the multifamily sector, where significant month-to-month swings in activity are not unusual and where new building has been below expectations for the past several months. Meanwhile, single-family housing starts remained virtually flat for the month, with a 1.0 percent decline. MORE

Governor O'Malley said that Marylandwill receive more than $246 million under the Obama administration's plan to help stabilize the U.S. housing market. The initiative will help developers of multifamily rental projects by providing a low fixed interest rate and making $90 million available for these projects. MORE

U.S. House of Representatives member Michelle Bachmann:

"The tax code is used by government as social engineering. I spent years [as an attorney] in the United States federal tax court seeing the difficult burden of the tax code in people's lives and I think the federal government should really stop social engineering."


Courtesy, Lenn Harley, Broker,, 800-711-7988, serving home buyers in Maryland and Northern Virginia.


"HEY DAD, is it true that 25 years ago, people actually owned their own homes? "

"YES SON, look at this old photo of me in front of the home my parents owned."


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Comment balloon 0 commentsKevin Robinson • March 27 2011 10:13AM