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Comment private us state
NBC'S ZINHLE ESSAMUAH HAS MORE IN TONIGHT'S FEATURE REPORT. >> Reporter: RENT IS ON THE RISE IN CITIES ACROSS THE COUNTRY. >> TONIGHT, SKYROCKETING RENTS FORCING A GROWING NUMBER OF AMERICANS TO THINK TWICE ABOUT WHERE HOME IS. >> IT HAS BEEN MAKING NEWS FOR MONTHS. RENT IS UP. RENTAL PRICES INCREASING MORE THAN 30% IN MAJOR CITIES ACROSS THE U.S. THERE IS A HANDFUL OF REASONS FOR THE SURGE. BUT, EXPERTS SAY ONE IN PARTICULAR IS KEY. PRIVATE EQUITY FIRMS. PRIVATE EQUITY FIRMS RAISE MONEY FROM INSTITUTIONAL AND ACCREDITED INVESTORS. SO, NOT JUST FROM ANY ORDINARY PERSON. THEY INVEST IN DIFFERENT TYPES OF ASSETS WITH THE AIM OF GETTING A RETURN ON AN INVESTMENT. >> A LOT OF THESE PRIVATE EQUITY BACKED FIRMS REALLY MOVED INTO THE APARTMENT MARKET. THE MULTIFAMILY MARKET IN A BIG WAY AFTER THE LAST HOUSING CRISIS. THEY ALSO MOVED INTO THE SINGLE FAMILY MARKET. WHAT THEY DO IS THEY GO OUT AND THEY BUY BUILDINGS, MAKE CHANGES QUICKLY TO TRY TO INCREASE THE PROFIT. INCREASE THE PROFIT. >> Reporter: VOGEL, A HOUSING REPORTER WITH PROPUBLICA RAISE RENT AND CUT OTHER BUILDING EXPENSES. >> MAINTENANCE, SECURITY, ALL THOSE IMPORTANT THINGS THAT PEOPLE REALLY RELY ONTO LIVE IN THESE BUILDINGS COMFORTABLY. >> Reporter: TENANT ADVOCATES SAY THOSE MONEY SAVING MEASURES FOR EQUITY FIRMS COST TENANTS. >> TENANTS HAVE TOLD ME STORIES ABOUT HAVING TO LIVE WITHOUT WORKING HEAT IN THE DEAD OF WINTER IN SOME PRETTY COLD PLACES LIKE MINNEAPOLIS. ONE CASE, A TENANT TELLING A STORY ABOUT WATER THAT WAS OVER AN ELECTRIC OUTLET AND NEEDING THE POWER TURNED OFF AND THE COMPANY TELLING HER SHE WOULD NEED TO TURN IT OFF HERSELF REQUIRING HER TO WADE THROUGH ELECTRIFIED WATER. >> Reporter: THERE IS THE ISSUE OF AFFORDABILITY. FOR RENTERS AND HOME BUYERS. THE MEDIAN HOME PRICE IN THE U.S. HITTING A HIGH OF $416,000 IN JUNE. WITH RISING MORTGAGE RATES AND EXPENSIVE HOUSE COSTS SLOWING HOME SALES AND PUSHING MANY TO RENT. NATIONWIDE, THE AVERAGE RENT FOR A ONE BEDROOM, $1,701. WHILE A TWO BEDROOM IS $2,048. THAT'S A MORE THAN 25% INCREASE SINCE LAST YEAR. AS RENTS DRASTICALLY INCREASE, EXPERTS SAY PRIVATE EQUITY FIRMS ARE A MAIN REASON WHY. PRIVATE EQUITY FIRMS PLAYED A MAJOR ROLE IN THE RENTAL MARKET. FINANCE COMPANIES LIKE FREDDIE MAC ARE FUELING THE RISE IN HOUSING COSTS. SINCE 2015, FREDDIE MAC GAVE BILLIONS TO THESE FIRMS INCLUDING REAL ESTATE COMPANY GREYSTAR. >> WE ARE GETTING VERY AGGRESSIVE IN DRIVING EXPENSES DOWN. >> Reporter: HERE IS GREYSTAR CEO DISCUSSING HIS FIRM'S ABILITY TO CUT COSTS BACK IN 2010. >> WE CAN DRIVE DRAMATIC SAVINGS. >> Reporter: BUT RESIDENTS WORRY PRIVATE EQUITY FIRM SAVINGS WILL COME AT A COST. PRICING THEM OUT OF PREVIOUSLY AFFORDABLE HOMES. >> A LOT OF THE TENANT ADD ADVOCATES FEEL THAT THE FINANCING FREDDIE IS PROVIDING IS COMING WITH VERY FEW STRINGS ATTACHED FOR THE BUSINESSES THAT ARE TAKING THE MONEY. >> Reporter: MORTGAGE COMPANY FREDDIE MAC SHARED IN A STATEMENT THEY ARE FOCUSED ON...
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