[MCN] Does money laundering affect the price of homes?

[Lance Olsen]

GoogleAI Overview
Yes, money laundering significantly distorts and inflates residential and commercial home prices. Because real estate allows criminals to inject large sums of illicit cash into the legitimate economy at once, it is a highly targeted method for concealing illegal profits.  <https://onlinelibrary.wiley.com/doi/abs/10.1111/kykl.12306>

Wiley Online Library
 +2
How Money Laundering Impacts Home Prices
Inflated Bidding & Prices: When perpetrators use illicit gains to buy real estate, they artificially increase housing demand and drive up market prices, denying a level playing field to everyday home buyers.  <https://www.linkedin.com/pulse/money-laundering-real-estate-market-threat-affordable-thomas-nk7rc>

LinkedIn
·Divine George Thomas
 +1
Reduced Housing Supply: Criminals often buy properties solely to park and hide illicit assets. These properties may sit vacant or be used as hidden assets for extended periods, reducing the available inventory for legitimate buyers.  <https://www.linkedin.com/pulse/money-laundering-real-estate-market-threat-affordable-thomas-nk7rc>

LinkedIn
·Divine George Thomas
Displacement of Locals: The influx of massive amounts of hidden money often leads to rapid real estate appreciation. This prices long-time inhabitants out of their own neighborhoods.  <https://www.linkedin.com/pulse/money-laundering-real-estate-market-threat-affordable-thomas-nk7rc>

LinkedIn
·Divine George Thomas
Market Distortions & Value Manipulation: Launderers sometimes manipulate transaction values by either severely under-reporting the true value (paying the rest in illicit cash) or over-paying for properties to repay large loans.  <https://www.firstaml.com/resources/5-ways-criminals-launder-money-through-real-estate/>

First AML
 +1
Economic research highlights that the housing market creates an upward distortion on prices, particularly in areas where illicit trades are prominent and where "shell companies" are used to obscure the true buyer's identity.  <https://onlinelibrary.wiley.com/doi/abs/10.1111/kykl.12306>

Wiley Online Library
 +1
To explore the broader socioeconomic impacts of this issue, you can review this FACT Coalition Report <https://thefactcoalition.org/time-to-clean-house-unpacking-the-harms-of-massive-money-laundering-in-the-real-estate-sector/> or this breakdown of Money Laundering in Real Estate <https://complyadvantage.com/insights/real-estate-money-laundering/> by ComplyAdvantage.


……

“Free oxygen not only supports life :  it arises from life.”

“Oxygen in the atmosphere might be reduced several percent below the present level without adverse effects.”
 
Preston Cloud and Aharon Gibor. The Oxygen Cycle.  
Scientific American, September 1970

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