Institutional Investors Play Small but Visible Role in Housing Market

As housing affordability remains a top concern for many Americans, the role of large investment firms in the real estate market has drawn renewed attention.

Earlier this year, President Trump proposed banning institutional investors from buying single-family homes, arguing that everyday families are being priced out by large corporate buyers. The proposal sparked debate over how much influence these investors really have.

Institutional investors — including private equity firms and large Real Estate Investment Trusts such as Invitation Homes and American Homes 4 Rent — have been purchasing single-family homes to rent out since at least 2021. Their activity increased following the foreclosure wave and the historically low interest rates of the early 2020s.

Nationally, however, the numbers show these firms represent a relatively small slice of the market.

Large institutional investors — often defined as companies owning between 100 and 1,000 properties — control roughly 1 percent of the nation’s 86 million single-family homes, according to the National Association of Realtors.

Within the single-family rental market, which includes an estimated 11 to 15 million homes, their share is slightly higher but still limited. Research from the American Enterprise Institute, the Brookings Institution, the Urban Institute, and the Government Accountability Office places their share between 3 and 5 percent.

Even at their peak in 2021 and 2022, institutional investors accounted for no more than 3 percent of single-family home purchases nationwide.

The broader investor picture looks different.

When smaller landlords are included — often called “mom-and-pop” investors who own between one and 10 properties — total investor activity is much higher. In parts of 2025, investors of all sizes made up 30 to 33 percent of single-family home purchases, according to BatchData. In prior years, that figure typically ranged from 18 to 26 percent.

Small investors account for roughly 90 percent of investor-owned homes and represent the majority of investor purchases.

While institutional investors are not dominant at the national level, their presence is more noticeable in certain regions. In fast-growing Sun Belt metro areas such as Atlanta, Phoenix, Tampa, Charlotte, and Nashville, institutional ownership can reach 5 to 15 percent of rental homes — and sometimes more in specific neighborhoods.

Housing experts note that local concentration can have a stronger impact on prices and rental competition than national averages suggest.

Supporters of restrictions argue that even a small national share can distort local markets where supply is tight. Critics counter that the primary drivers of high home prices remain limited housing inventory, zoning restrictions, population growth, and rising construction costs.

As policymakers debate possible limits on institutional buying, the data suggest a nuanced picture: large firms are not the primary force in the national housing market, but in certain communities, their footprint is more significant.