Wall Street’s growing role in the housing market frustrates small landlords

Institutional home buyers own around 1% of the US single-family stock, with smaller landlords owning two to nine homes being the biggest players in the national housing market. However, in certain regional pockets, institutional homebuyers have a greater presence, with six markets accounting for 36.8% of all institutionally owned single-family homes. A survey of 284 real estate investors found that 85% own between 2 and 20 investment/rental properties. The majority of real estate investors, 54.4%, have a somewhat or very unfavorable view of institutional landlords. Only 14.9% of real estate investors have a somewhat or very favorable view of institutional landlords. The survey also found that real estate investors are split on whether stricter regulations for corporate landlords would benefit smaller landlords. Some 54.2% of real estate investors believe stricter regulations would be somewhat or very positive for mom-and-pop landlords, while 45.8% believe it would be somewhat or very negative. Institutional operators have the highest percentage of ownership in markets such as Atlanta, Jacksonville, and Charlotte. Even within housing markets, the percentage of institutional ownership can vary greatly, with institutions often concentrating in the same neighborhoods. The survey highlights the complex relationship between institutional homebuyers and smaller landlords in the US housing market.