Leave a Message

Thank you for your message. We will be in touch with you shortly.

A kitchen with a large island in the middle, stools, and a stove

Is Wall Street Buying Up All the Homes in America?

For Buyers Laura Miller Edwards Realty Group December 7, 2023


If you’re thinking about buying a home, you may find yourself interested in the latest real estate headlines so you can have a pulse on all of the things that could impact your decision. If that’s the case, you’ve probably heard mention of investors, and wondered how they’re impacting the housing market right now. That could leave you asking yourself questions like:

  • How many homes do investors own?
  • Are institutional investors, like large Wall Street Firms, really buying up so many homes that the average person can’t find one?

To answer those questions, here’s the real story of what’s happening based on the data.  

Let’s start with establishing how many single-family homes (SFHs) there are and what portion of those are rentals owned by investors. According to SFR Investor, which studies the single-family rental market in the United States, there are eighty-two million single-family homes in this country. But how many of them are actually rentals?

According to data shared in a recent post, sixty-eight million (82.93%) of those homes are owner-occupied – meaning the person who owns the home lives in it. If you subtract that sixty-eight million from the total number of single-family homes (82 million), that leaves just about fourteen million homes left that are single-family rentals (SFRs).

Do institutional investors own all of those remaining fourteen million homes? Not even close. Let’s take it one step further. There are four categories of investors:

  • The mom & pop investor who owns between 1-9 SFRs
  • The regional investor who owns between 10-99 SFRs
  • Smaller national investor who owns between 100-999 SFRs
  • The institutional investor who owns over 1,000 SFRs

These categories show that not all investors are large institutional investors. To help convey that even more clearly, here are the percentages of rental homes owned by each type of investor (see chart below):

 

As you can see in the chart, despite what the news and social media would have you believe, the green shows the vast majority are not owned by large institutional investors. Instead, most are owned by small mom & pop investors, like your friends and neighbors.

What’s actually happening is, that there are people out there, just like you, who believe in homeownership, and they view buying a home (or a second home) as an investment. Maybe they saw an opportunity to buy a second home over the last few years to use it as a rental and generate additional income. Or maybe they just decided to keep their first house rather than sell it when they moved up.

So, don’t believe everything you read or hear about institutional investors. They aren’t buying up all the homes and making it impossible for the average person to buy. That’s just not what the numbers show. Institutional investors are actually the smallest piece of the pie chart.

Bottom Line

While it’s true that institutional investors are a player in the single-family rental marketplace, they’re not buying up all of the houses on the market. If you have other questions about things you’re hearing about the housing market, let’s connect so you have an expert to give you the context you need.

This blog post previously appeared on https://www.simplifyingthemarket.com/en/2023/11/27/is-wall-street-buying-up-all-the-homes-in-america?a=106260-312309902871c1f0d820820f58bf8fde. The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Recent Blog Posts

Stay up to date on the latest real estate trends.

Selling Tips

The #1 Thing Sellers Need To Know About Their Asking Price

When you put your house on the market, you want to sell it quickly and for the best price possible.

A white kitchen with a stove and a sink. The kitchen has stainless steel appliances and granite countertops.

For Buyers

4 Ways To Make an Offer That Stands Out This Spring

Here are some top tips your agent will share with you that are helping buyers stand out (and win) in today’s market.

Downsize

Does Your Current Home Fit Your Retirement Plans?

Retirement isn’t just a milestone. It's the beginning of something really special.

Buying Tips

Why Pre-Approval Is More Important Than Ever This Spring

If you want to put yourself in the best position to buy, there’s one step you can’t afford to skip, and that’s getting pre-approved for a mortgage.

Buying Tips

What You Need To Know About Homeowner’s Insurance

Homeowner’s insurance is a must-have to protect what’s probably your biggest investment – your home.

For Sellers

The Best Week To List Your House Is Almost Here – Are You Ready?

If selling your house is on your to-do list this year, the time to start prepping is now.

For Sellers

Why a Pre-Listing Inspection May Be Worth It in Today’s Market

It pays to anticipate potential issues before buyers ever step through the door. And one way to do that is with a pre-listing inspection.

For Buyers

Is a Newly Built Home Right for You? The Pros and Cons

Right now, there are more newly built homes to choose from than there would normally be in the market.

A large white house with white shutters in a field.

Pricing

Do You Know How Much Your Home Is Worth?

Over the past few years, you’ve probably seen a whole lot of headlines about how home prices keep going up. But have you ever stopped to think about what that actually… Read more

Work With Us

Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact us today.