Can Wall Street Help Solve the US Housing Crisis?
On Bullish with Sonali Basak, we explore how private equity is changing the landscape for homebuyers and renters, and whether it will help or hurt them.
Pretium Chief Executive Officer Don Mullen, left, on Bullish with Sonali Basak
Housing affordability has become a flashpoint in the US economy. How can the country be truly wealthy when the bulk of a rising generation can’t afford a home? There’s a shortage of anywhere between 3.7 million and 5.5 million homes in the US, according to estimates from Freddie Mac and the National Association of Realtors, respectively. Both Democrats and Republicans have promised to close the gap, but little has been done over the past decade.
Enter Wall Street. Since the 2008 housing crash, the private investment industry has begun to buy up houses, finance homebuilders and push for more rental housing. Critics warn financial firms are hoping to profit from the crisis, pushing up home prices in some of the country’s biggest cities. Wall Street says it’s found the solution to home scarcity. On this episode of Bullish with Sonali Basak, we take look at both sides.