How Many Houses Are Owned by Corporations?

Corporate homeownership, where residential properties are owned by organizations rather than individuals, has significantly increased in the United States. These entities range from large, publicly traded investment firms to smaller, privately held limited liability companies. This trend influences housing availability, market dynamics, and overall home affordability.

Current Landscape of Corporate Homeownership

The extent of corporate ownership in the single-family housing market varies by definition. Institutional investors owning over 1,000 homes hold about 0.67% of the U.S. single-family housing stock, or approximately 600,000 homes as of 2024. This percentage rises to about 3.8% for investors owning more than 100 homes. Other estimates suggest corporations own about 10% of single-family homes in 2025.

Non-individual investors, including various corporate structures, increased their share of rental properties from 18% in 2001 to 27% in 2021. For single-family rentals, these investors owned 25% in 2021, up from 17% two decades prior. Corporate involvement in the housing market has increased, particularly since the 2008 financial crisis. Investor purchases generally accounted for about a quarter of the single-family home market as of 2022.

Types of Corporate Owners

Corporate entities acquiring residential properties can be broadly categorized into large-scale institutional investors and smaller, often local, corporate entities. Large institutional players include private equity firms and Real Estate Investment Trusts (REITs). REITs, specifically Single-Family Rental (SFR) REITs, pool capital from numerous investors to acquire and manage portfolios of single-family homes, generating income primarily through long-term leases. These entities often operate across multiple states and hold tens of thousands of properties, such as Invitation Homes and American Homes 4 Rent.

Smaller corporate entities typically involve Limited Liability Companies (LLCs) formed by individual investors or small groups. An LLC provides a legal structure that separates personal assets from business liabilities, offering asset protection in the event of a lawsuit related to the property. For tax purposes, LLCs are often treated as “pass-through” entities, meaning profits and losses are reported on the owners’ personal tax returns, avoiding double taxation that might occur with traditional corporations. While mortgages for LLCs can be more challenging to obtain than for individuals, they are becoming increasingly common, though often requiring higher down payments, sometimes around 25%.

Motivations Behind Corporate Acquisitions

Corporate entities acquire residential properties for diverse strategic and financial reasons. A primary motivation is to generate long-term rental income, transforming purchased homes into rental units to create a steady cash flow. This strategy is particularly appealing given the consistent demand for rental housing, especially single-family homes, which often experience lower tenant turnover compared to multi-family units. Some investors also seek short-term rental opportunities, like vacation rentals, although long-term leases are more common for larger portfolios.

Another significant incentive is property appreciation, where corporations anticipate an increase in the property’s market value over time, allowing for potential capital gains upon sale. This long-term wealth building aligns with broader portfolio diversification strategies, as real estate can serve as a hedge against inflation. Corporations with substantial capital can often purchase homes with cash, which provides a competitive advantage in a fast-moving market and enables them to acquire properties at scale. Tax benefits also play a role; for example, investors in Single-Family REITs may deduct interest payments as expenses, similar to individual homeowners.

Geographic Patterns of Corporate Ownership

Corporate homeownership often shows distinct geographic concentrations, particularly in regions experiencing robust economic growth and strong housing demand. The Sunbelt states, encompassing areas across the Southeast and Southwest, have seen significant influxes of corporate investment in single-family homes. Cities within these regions, such as Atlanta, Georgia; Jacksonville, Florida; Charlotte, North Carolina; and Tampa, Florida, exhibit higher rates of institutional ownership in their single-family rental markets. For instance, institutional investors own an estimated 25% of Atlanta’s single-family rental housing market.

Several factors contribute to these concentrated patterns. Locations with strong job markets and growing populations attract corporate investors seeking stable rental demand and potential property appreciation. Areas with a perceived lack of housing supply relative to demand also become targets. Furthermore, regions with landlord-friendly regulations, which may include streamlined eviction processes, fewer rent control restrictions, and potentially lower property taxes, are often favored. These regulatory environments can enhance the profitability and operational ease for corporate landlords managing large portfolios.