ProPublica | America's New Landlord: Private Equity @ProPublica | Uploaded May 2022 | Updated October 2024, 1 day ago.
Rent has nearly doubled in many American cities over the past decade, despite stagnant wages and amid a nationwide housing shortage. What’s responsible for putting today’s renters in a financial bind? One answer is private equity.
During the 2008 financial crisis, when banks foreclosed on the homes of millions of Americans, private equity money bought up properties at bargain prices. Today, private equity is one of the biggest landlords in urban America — targeting multifamily apartment buildings and often using aggressive tactics, such as increasing rent or neglecting upkeep, to squeeze out profits before selling the buildings at a higher price.
Another hidden force reshaping the rental housing market is tenant screening algorithms, which landlords increasingly rely on to help them select renters and determine rent prices. But how these algorithms work is unclear and, for those whose tenant applications are denied, getting answers is nearly impossible.
At this event, we examined how private equity and shadow algorithms are contributing to the nationwide affordable housing crisis, explored potential pathways to change from a policy perspective and addressed tenants’ rights.
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Rent has nearly doubled in many American cities over the past decade, despite stagnant wages and amid a nationwide housing shortage. What’s responsible for putting today’s renters in a financial bind? One answer is private equity.
During the 2008 financial crisis, when banks foreclosed on the homes of millions of Americans, private equity money bought up properties at bargain prices. Today, private equity is one of the biggest landlords in urban America — targeting multifamily apartment buildings and often using aggressive tactics, such as increasing rent or neglecting upkeep, to squeeze out profits before selling the buildings at a higher price.
Another hidden force reshaping the rental housing market is tenant screening algorithms, which landlords increasingly rely on to help them select renters and determine rent prices. But how these algorithms work is unclear and, for those whose tenant applications are denied, getting answers is nearly impossible.
At this event, we examined how private equity and shadow algorithms are contributing to the nationwide affordable housing crisis, explored potential pathways to change from a policy perspective and addressed tenants’ rights.
Sign up for ProPublica’s weekly newsletter: http://propub.li/2oyN8DY
Follow ProPublica on Twitter: http://propub.li/1fFfkwy
Follow ProPublica on Facebook: propub.ca/1EIvjjF
