Rental housing made unlawful by act of Congress
In the run-up to the 2044 presidential election, the President is expected to sign legislation making traditional landlord-tenant relationships unlawful. While rental housing has nearly become obsolete in the face of the increasingly popular Earned Equity Basket (EEB) real estate investment + living arrangement, just under 5% of Americans still pay rent for housing. Before the end of an 18-month period, landlords must transition their tenants to EEB or face federal penalties.
Congress’ action follows California and New York legislation restricting the leasing arrangements that are now widely seen as exploitative. 78% of Americans now believe rental housing ought to be entirely eliminated, according the latest Gallup poll, after years of fractional equity arrangements overtaking previous preferences for full home ownership or ownership-free renting.
Most members of Generation Alpha think it’s about time. When asked about the new law, 23 year old Brooklyn resident Karoline Hampstead had the following to say: “I can’t believe my parents used to pay rent without any expectation of property ownership. You might as well pay to watch a movie with real money instead of just a little data – stupid.”
While the US is at least ten years behind other developed nations in passing the legislation, the country has seen the widest range of fractional equity arrangements. From the public buying clubs that at one point controversially owned 60% of the land area in a resurgent Dayton, OH, to the standard 2.5% year earn-in, nearly all Americans have put previously debt-laden or ownership-free living arrangements behind them. While the largest landowning families and companies complained bitterly about state-level legislation three years ago, nearly all have changed their tunes and embraced equity-sharing. Blackstone’s CEO conceded,
“We resisted fractional equity until we realized that increased residential property liquidity was a perfect opportunity to facilitate micro-equity trading in homes and apartments. We’ve also seen lower levels of volatility in the broader economy as greater ownership of land and property has reduced wealth inequality.”Fogge Boseman, CEO, Blackstone
Some old-school Millennial landlords are not going quietly. A lawsuit is in the works to preserve the rentier lifestyle that was in large part inherited from wealthy parents. Regardless of the case’s outcome, if vacancies in traditional rental units are any indication then the days of a landed aristocracy’s vice grip on property & building ownership are over.