What percentage of single-family homes in America are owner-occupied versus rentals?

According to the data presented, approximately 82.93% of the 82 million single-family homes in the United States are owner-occupied by the people who live in them, leaving about 14 million homes as single-family rentals owned by various types of investors.

Do institutional investors actually own most of the rental homes in America?

No. While institutional investors (those owning over 1,000 single-family rentals) are a presence in the market, they represent the smallest portion of investors. The vast majority of rental homes are owned by small "mom and pop" investors who own between 1 and 9 properties, often neighbors and friends rather than large Wall Street firms.

What are the four main categories of real estate investors?

The categories are: mom & pop investors (1-9 homes), regional investors (10-99 homes), smaller national investors (100-999 homes), and institutional investors (over 1,000 homes). Most of the single-family rental market is dominated by the first category of small, independent investors.

Are institutional investors making it impossible for average people to buy homes?

No. The data shows that institutional investors hold only a small portion of the single-family rental market, so they are not creating a barrier to homeownership for the average buyer. Most rental homes are held by individual investors similar to everyday people seeking additional income or holding onto previous properties.

Is Wall Street Buying Up All the Homes in America?

By Anne-Britt OstlundNovember 27, 20233 min read

Real Estate Market Updates

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

As you navigate the dynamic landscape of the real estate market, it's essential to have accurate information and expert guidance. While institutional investors may be a presence in the single-family rental marketplace, they don't hold exclusive sway over all available properties.

If you find yourself with questions or uncertainties about the housing market, it's wise to connect with a trusted real estate professional. At Mountain Rose Realty, led by the experienced Anne-Britt Ostlund, we pride ourselves on providing insightful guidance tailored to the Telluride Real Estate market. Whether you're exploring Telluride homes for sale or considering the opportune time to sell your property in Telluride, CO, our team is here to offer the expertise you need.

Don't let misinformation or market myths guide your real estate decisions. Anne-Britt Ostlund and the Mountain Rose Realty team are dedicated to providing you with the context and insights necessary for informed choices in the Telluride real estate market. Reach out to us today, and let's navigate the exciting world of real estate together. Your dream home or a successful sale may be closer than you think.

Frequently Asked Questions

What percentage of single-family homes in America are owner-occupied versus rentals?: According to the data presented, approximately 82.93% of the 82 million single-family homes in the United States are owner-occupied by the people who live in them, leaving about 14 million homes as single-family rentals owned by various types of investors.
Do institutional investors actually own most of the rental homes in America?: No. While institutional investors (those owning over 1,000 single-family rentals) are a presence in the market, they represent the smallest portion of investors. The vast majority of rental homes are owned by small "mom and pop" investors who own between 1 and 9 properties, often neighbors and friends rather than large Wall Street firms.
What are the four main categories of real estate investors?: The categories are: mom & pop investors (1-9 homes), regional investors (10-99 homes), smaller national investors (100-999 homes), and institutional investors (over 1,000 homes). Most of the single-family rental market is dominated by the first category of small, independent investors.
Are institutional investors making it impossible for average people to buy homes?: No. The data shows that institutional investors hold only a small portion of the single-family rental market, so they are not creating a barrier to homeownership for the average buyer. Most rental homes are held by individual investors similar to everyday people seeking additional income or holding onto previous properties.