Boston Real Estate Investors Association

Why Wall Street Is Buying So Many U.S. Homes

Some Washington D.C. lawmakers want to limit Wall Street’s role in the housing market. In recent years, a small but mighty group of corporations bought hundreds of thousands of homes in sunbelt-region suburbs. These homes are traditionally a crucial investment for American families. But rising home prices are shutting would-be homebuyers out of the market. Meanwhile, financial groups are profiting from rising rents while their subsidiaries build small amounts of new standalone homes in the U.S.

Since the early 2010s, Tricon Residential, Progress Residential, American Homes 4 Rent, Invitation Homes have each bought thousands of homes. They’ve also added to the housing supply in some cases with built-for-rent communities.Some of these companies are financed by private equity firms like Blackstone and investment managers like Pretium Partners.

“It’s almost a captive market” said Jordan Ash, director of Labor-Jobs and Housing at the Private Equity Stakeholder Project. “They’ve been very explicit about how people are shut out of the homebuying market and are going to be perpetual renters.”

These calls come after fierce housing inflation hit many Sun Belt states, including Texas, Florida and Georgia, according to the National Association of Realtors. 

By 2030, the institutions may hold some 7.6 million homes, or more than 40% of all single-family rentals on the market, according to the 2022 forecast by MetLife Investment Management.

Watch the video above to learn about the rise and future of corporate landlords in the United States.

01:28 — Chapter 1: Landlords
05:02 — Chapter 2: Housing stock
07:55 — Chapter 3: Homebuying
09:46 — Chapter 4: Solutions

Produced by: Carlos Waters
Supervising Producer: Lindsey Jacobson
Graphics by: Jason Reginato
Additional Production by: Bryan Rager

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Why Wall Street Is Buying So Many U.S. Homes
national real estate investors association

48 thoughts on “Why Wall Street Is Buying So Many U.S. Homes”

  1. It is an absolute ordeal to get building, plumbing, and electrical permits. Once a builder does all that it makes sense to add granite counters and upgrade the appliances and sell it as high-end.

  2. Besides, just building moresupply, can they build better cities. . I don’t mind renting but I want to be in a walkable area with good public transportation. I don’t wanna be stuck out somewhere in depressing suburbia

  3. All cash buyers have gone from 15% to 40% since before the pandemic. That’s basically all corporate money and foreign money laundering/parking. They are killing the middle class.

  4. You cannot build, build, build! Why does the environment have to pay for the greed of Wall Street? Also, bankers and investors always think that they are helping when in fact they are only feathering their beds. Didn't colonialists claim that they were helping the nations they were exploiting, didn't American slave owners insist that their slaves were better off being slaves?

  5. Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals…

  6. Stealing from us, period!! The corporation and the government are both in on it. Why do you think there are so many depressions and recessions?? The rich can steal everything for a song than sell it high. Simple. Thievery.

  7. People often don't know such things until someone brings the information into awareness. Thank you for caring & spending time building your knowledge & now the knowledge of others.

  8. Cities and community leaders could make a huge difference & tackle this issue. Contact your local leaders & tug their heartstrings for change. Many local officials truly care about the community they represent & are often your neighbor.

  9. And people wonder why so many people are drug addicts and homeless? They've given up because they can't make it anyway & they have nothing. Then people turn around & criticize all those struggling because in-part the world is disgusting.

  10. "Representative" seem to have amnesia & forgot who they work for. We the people are who they work for. Yet big investors and wall street are buying up all the homes WITH HELP from the government. They are buying at inflated prices too. What's next…..they bought too high & will lose a bunch of money & must be bailed out by taxpayers who work like slaves while they make horrid decisions on how to spend $$$. Tell us we're the best, but in so many ways it's the exact opposite & US citizen money line the pockets of warlords, other countries (either too lazy or incompetent or something to support themselves). More than disgraceful. Shame on their souls & clouds of dishonor fill their heads.

  11. Simple solution, for every property owned by an individual or organization, add a multiplier to ALL of the property taxes for all the properties. For example, if you own 2 properties, you pay 2.0x the property taxes on each property. This would increase costs on those with multiple home and obviously have the ability to pay.

  12. Another reason it's less likely to happen that way is that there's already too much demand waiting to absorb it, regardless of how many people are panicking and calling the crash. Nobody, at least not the general public, predicted this in 2008. According to another reply, the ownership rate peaked in 2004. We are currently at the median level, having peaked in the second quarter of 2020. It fell by 3% between 2008 and 2012, from 68 to 65 in the second quarter of 2020.

  13. I said it and I'll say it again, whoever can address the housing issue will get my vote. There needs to be a regulation to prohibit corpoartion from buying familiy homes. Corpo needs to build homes if they wanted to increase their assets, which it would contribute value to the society. However, they put nothing on the table if all they do is purchase.

  14. Pricing based on supply and demand often or at least in cycles overprices houses which crash unless it is purchased for the long run like thirty years. So now they are for sale early and market value is low which idea for big money to pay a bit more and take control of a market, they do it all the time in corporate buy outs which is same thing. NOW, housing needs to be treated same as a utility, ie electric services that are not the overpriced government owned city ones, but the private corporate suppliers in much of America such as Con Ed, Duke, Dominion, etc in the east. THEY all fall under government regulation of rates and have limits on profits to a level of making them attractive to investors for money but not quick big money of stable income which is why many people love that stock especially seniors needing safe investment for their retirement. Buying and renting housing as a business is a high profit stock and needs to be stopped by states.

  15. The greater the automated income you can build, the freer you will become. Taking the first step is the hardest, but 5 houses later living off passive income since July 6, 2016. You’ve got to start taking steps to achieve your goal.

  16. Dear Commie Blackstone CEO, we have a chronic housing shortage called 5 million illegals a year needing about 2 million housing units as apartments or homes times 8 years of Biden or 16 million units. Better start building. There are just no apartments or homes left for citizens any more and won't be for years, at least 6 more of Biden anyway.

  17. This is going to CONTINUE to exacerbate the homeless crisis! You rent a home and suffer life event and can’t pay, you will be homeless.

  18. The rich are being greedy. They want everyone to stay a peasant for the rest of their lives. Be proactive and only sell to families.

  19. No corporate entities should own single family homes. No human should be allowed more than 2 houses per person. One house and a backup house, that's it. The game has gotten greedy. Rich since birth people are evil.

  20. wall street created the crash of 2008, and then purchased all the houses at very low cost and low interest . . . brilliant

  21. Why is a person making 120k a year below the poverty line? This is nut’s. Happening all over the world. American homeowners fell for the Okie Dokie and many are now renting.

  22. yeah,.. average income since 1970 vs housing price 27% vs 147% increase…constantly getting bent by wall street and hmmm the government just lets it happen over and over. fun times. inflation is down yall biden said it first, economic genius

  23. I can tell you why. The homes are being rented to illegal immigrants and the government is subsidizing it. We've had 20 million illegals cross the border in 3 years yet there are no homeless illegals anywhere in the country.

  24. And while landlords can sit on a fixed rate mortgages for 15-30 years if they want, they are permitted to raise rents with impunity every year if they want on tenants, many of whom may be disabled or elderly and barely able to make ends meet as it is. There's no way anyone in that class can afford 10-15% rent increases every year, an in many (especially red) states, tenants have NO rights and there are no legal limits on how much lease renewals can be permitted to be raised even on good tenants that pay on time every month. WTF is so hard about letting people live where they live and charging a fair rent with lease renewal increases tied to staying withing the limits of property tax fluctuations? It certainly isn't costing landlords anything more every year; and states that offer homeowners "homestead" rights should have similar "homestead" rights that can apply to good, long-term tenants over the age of 62 (or whatever).

  25. There's a lot more Short term rentals out there than houses that are for sell, that was a recent development. If we tax more for the STR, more houses will come back to the market for long term rentals or buy.

  26. I was looking for a place to get some food in Portland. I found a food cart that had chicken in a salad. It was great, but it cost 18 dollars. Inflation is high. And housing is not any higher than all the other inflation going on.

  27. I’m from kSA and I’m waiting the houses to crash in USA cuz our market follows you guys😅 cuz i want to invest in my country lands but it’s too high and risky in these days 😊 I’m waiting you American friends😅

  28. Long term, owning is always more financially beneficial than renting the equivalent property. Anyone who says otherwise is a liar.

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