A new analysis by Chandan Economics of Census Bureau data shows that individual investors – not institutions – own by far the biggest share of single-family rental homes (SFRs) in the U.S.
Institutional ownership represented a far smaller share, despite the widely publicized activities of corporations with the financial resources to scoop up multiple single-family homes in one go, beating aside local buyers. The President has even issued an executive order to restrict the practice.
Though just released, the data was collected from June to November 2024 as part of the Census Bureau's 2024 Rental Housing Finance Survey. It is the only data source that provides a comprehensive picture of mortgage financing for all types of rental properties.
Chandan found that 59.6% of one-unit rental properties in the country were owned by individual investors. That is fewer than in 2021, when individuals owned 70.9% of SFRs.
Other major investors were LLPs/LPs and LLCs (20.6%), estate trustees (6.8%), REITs and real estate corporations (1.8%), unreported (8.2%) and other structures like partnerships and nonprofits (3%).
"The composition of ownership has shifted since 2021," the report stated. "Individual ownership declined from 70.9% to 59.6%, while LLP/LP/LLC usage increased from 15.2% to 20.6%.
"Trustee ownership rose from 1.9% to 6.8%, suggesting a growing role for estate structuring and demographic turnover. These changes point to greater formalization of ownership and generational transition within the sector rather than a pronounced increase in institutional concentration."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.