“They already own 89% of the S&P 500 and now they’re going after single-family homes in the United States,” warns RFK Jr.

“They already own 89% of the S&P 500 and now they’re going after single-family homes in the United States,” warns RFK Jr.

On a interview On The Breakfast Radio, Robert F. Kennedy Jr. shared his views on his 2024 presidential bid, reparations, inflation, and the housing crisis in the United States, among many other topics.

His comments about big corporations causing the housing crisis and hurting young Americans’ chances of buying an affordable home have gotten a lot of attention.

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“There are three giant corporations, BlackRock, State Street and Vanguard, that collectively own each other, so it’s really one giant corporation, but they also own 89% of the S&P 500. They own everything, and now they’ve decided to buy every single-family home in the United States, so if they continue on their current trajectory, they’ll own 60% of the single-family homes in this country by 2030. They’re literally trying to buy everything,” RFK Jr. said.

His words align with what Vivek Ramaswamy, a former presidential candidate, said. In a post on Xhe stated, “BlackRock, State Street, and Vanguard represent arguably the most powerful cartel in human history: they are the largest shareholders in nearly every major public company (even each other).”

But are RFK Jr. and Ramaswamy right? Do these three major corporations really own that much of the S&P 500?

According to Business Insider, their arguments can be traced back to academic article 2017 paper titled “Hidden Power of the Big Three? Passive Index Funds, Corporate Ownership Reconcentration, and New Financial Risk.”

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Researchers say BlackRock, State Street and Vanguard are the largest shareholders in 88% of S&P 500 companies.

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In conclusion, the researchers write that since 2008, there has been a substantial shift from active to passive investment strategies. BlackRock, Vanguard, and State Street now dominate this passive investment market. Together, they are the largest shareholders in 40% of all U.S. companies and 88% of S&P 500 companies, and they are, in fact, permanent board directors for more than 40% of all U.S. publicly traded corporations.

And what about RFK Jr.’s claims that they may own 60% of the single-family homes in the United States?

While BlackRock, Vanguard, and State Street have considerable influence in the financial markets and are influential investors in various sectors, their direct involvement in the purchase of single-family homes is relatively limited. BlackRock, for example, has stated that it does not purchase individual single-family homes, but rather invests in mortgage securities and financing for new home construction to increase the housing supply.

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There is some truth to the concern, however, because private equity firms and other large investors have been buying up single-family homes, particularly during the 2008 financial crisis. These corporations often buy homes in bulk, sometimes outbidding individual buyers, which can drive up prices and reduce the availability of homes for average families.

Additionally, according to a report by Redfin, investors purchased 26% of affordable homes in the US during the latter part of 2023. This makes it difficult for regular buyers, who are already struggling with low availability, rising prices and high interest rates.

As NBC News reported in 2021, homeowners are selling their homes to the highest bidders, and they’re often out-of-state investors — “They’re not selling to people who want to live there.”

If he becomes president, Kennedy plans to create a federal program that would offer mortgages at a 3 percent interest rate, financed by tax-exempt bonds. These low-interest mortgages would be available only to individuals, not corporations.

“This will reduce mortgage payments by over $1,000 a month for a median-priced home and allow your kids to outcompete BlackRock in the market,” he said.

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This article “They already own 89% of the S&P 500 and now they’re going after single-family homes in the United States,” warns RFK Jr. originally appeared on Benzinga.com

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