Key Highlights
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The U.S. housing crisis is driven by a major supply shortage, not ownership patterns.
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Institutional investors own under 1% of single-family homes.
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Their capital and scale help fund new construction and upgrade existing housing.
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Build-to-rent projects are adding much-needed supply to tight markets.
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Professionally managed rentals expand access for families priced out of ownership.
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SFRs offer stable, resilient returns while contributing to real supply solutions.
Introduction
The United States is deep in a housing crisis. For decades, underbuilding, restrictive zoning and falling behind on new housing starts have created a massive shortfall in supply – a structural deficit that fuels sky-high home prices and rents. In today’s climate, many families are doubling up, postponing homeownership indefinitely, or simply priced out of owning entirely. With supply lagging far behind demand, the root problem is not who owns the homes, the problem is how few homes there are.
That’s where institutional landlords – large-scale owners of single-family rentals (SFRs), increasingly represent part of the solution rather than part of the problem. Contrary to popular perception, they own only a tiny fraction of the national housing stock, yet their capital, scale, and strategic approach can help relieve supply constraints, improve housing quality, and expand access to stable rentals where homeownership remains out of reach.
Institutional Ownership Is Still Very Small
According to the most recent data from AEI Housing Center, as of November 2024, institutional investors (defined as portfolios of 100 + homes) account for only about 0.9% of all U.S. single‑family homes.
Meanwhile, a broader analysis by Urban Institute (June 2022) estimated that large institutional investors own roughly 574,000 SFR homes, a number that, relative to the total one‑unit rental stock, corresponds to a small share. In other words: despite recent headlines, “Wall Street owns all the houses” remains a distortion. The vast majority of single‑family homes and SFRs remain outside the control of large institutions.
In other words: despite the headlines, “Wall Street owns all the houses” is simply inaccurate. The vast majority of rental homes remain in the hands of individual or small-scale investors.
Why That Small Slice Matters: And Can Help
Even though large institutional landlords still own a small fraction of U.S. single-family homes, their capital, scale, and operational capacity allow them to act differently, and often more effectively than smaller landlords.
After the 2008 housing crash, large investors purchased distressed and foreclosed homes, restoring liquidity and stabilizing markets. (GAO, 2010) Today, similar dynamics are unfolding: smaller homebuilders and regional banks have retrenched, leaving many promising developments unfunded. Institutional capital is stepping in, offering financing and partnerships that help unlock new construction, a crucial lever in markets with severe housing shortages. (Wolf Street, 2025)
Large landlords also invest heavily in maintenance, renovations, and professional property management at scale, levels most small landlords cannot match. This results in higher-quality housing stock, more stable occupancy, and less neglect. In tight rental markets, every upgraded home counts.
Unlocking New Supply Through Build-to-Rent and Financing
A major advantage of institutional capital is its ability to go upstream, enabling new housing creation. Many large SFR operators are moving beyond scattered-site rentals toward purpose-built, build-to-rent developments. These projects deliver modern, scalable housing at a pace small investors often cannot match. (Wolf Street, 2025)
By channeling capital into new builds, institutions help put more homes on the market, the most direct way to address supply shortages. In a market with constrained inventory, new construction can ease pressure on prices and rents over time.
Providing Access -Especially Where Homeownership Is Out of Reach
For many American families, homeownership is increasingly difficult due to high prices, large down payments, stricter underwriting, and rising interest rates. That doesn’t mean these households don’t deserve access to quality housing. Institutional rentals fill this gap by providing professionally managed, well-maintained homes in neighborhoods with better schools, employment opportunities, and social mobility.
An Investor Opportunity - With Impact and Stability
From an investor perspective, single-family rentals remain attractive. Housing is a basic human need, demand is structural, and the shortage of supply creates resilient opportunities. Our portfolios at Strand generally offer stable occupancy, lower turnover, and predictable cash flows, characteristics that are especially valuable in a volatile macro environment.
At Strand, we aim to blend scale-buying acumen with long-term stewardship and market insight, earning reliable returns while contributing meaningfully to solving the nation’s housing challenges. By investing strategically in areas where supply is constrained and homes can be upgraded, we create both financial performance for our investors and positive impact for communities.
