What Percentage of Houses Are Owned by Corporations?

Corporate involvement in the U.S. housing market has grown, particularly in recent decades. Understanding the extent and nature of corporate homeownership is important for comprehending current housing market dynamics, including housing supply, rental prices, and the availability of homes for individual buyers.

Current Landscape of Corporate Homeownership

Measuring the precise percentage of houses owned by corporations across the United States is challenging due to varied legal structures and differing data collection methods. Corporations often acquire properties through entities like Limited Liability Companies (LLCs), institutional investors, or Real Estate Investment Trusts (REITs), which can obscure a clear view. Public records, real estate transaction data, financial institution records, and market research surveys contribute to available statistics.

Current estimates suggest corporations own a notable share of the U.S. housing stock. Approximately 10% of single-family homes are corporate-owned as of 2025, a slight decrease from 11.5% in 2014. While this percentage may seem modest, institutional investors, defined as entities owning at least 100 properties, held roughly 574,000 single-family homes nationwide as of June 2022.

Large and mega investors accounted for 20% of all investor purchases in the first quarter of 2023. In 2024, one out of every four real estate transactions involved an investor. Institutional investors owning over 1,000 homes represent approximately 1% of all purchases across the 20 largest U.S. metropolitan areas. Corporations owning at least 100 homes constitute another 2% of purchases, with smaller investors holding fewer than 10 homes making up 18% of the market.

The ownership landscape differs for multifamily properties, where ownership is more consolidated due to the scale and complexity of operations. Large apartment complexes are typically owned by institutional investors and major corporations. Even in this sector, the largest landlords do not hold more than a single-digit market share, with the top 50 combined managing about 7.1% of all rental apartments nationally. These figures highlight that while corporate ownership is a factor, individual and smaller landlords hold the majority of residential rental properties.

Types of Corporate Owners and Their Portfolios

Corporate entities involved in residential real estate range from large institutional players to smaller, localized operations. Each type of owner employs distinct investment strategies and targets specific property types.

Large institutional investors are a significant segment of corporate ownership, including private equity firms, Real Estate Investment Trusts (REITs), and large asset managers. Private equity firms have acquired single-family rental (SFR) properties, often holding vast portfolios of single-family homes, sometimes totaling hundreds of thousands of units nationwide. Their strategy involves turning these properties into rental units, building large portfolios for steady income and potential value increase.

Real Estate Investment Trusts (REITs) are another corporate avenue for residential property ownership. REITs are companies that own, operate, or finance income-generating real estate and sell shares to investors. Residential REITs invest in multi-family units and may also own single-family rentals. They generate income from renting these spaces and distribute at least 90% of their taxable income to shareholders as dividends. This structure allows investors to gain real estate exposure without direct property management. Publicly traded REITs provide liquidity, as their shares can be bought and sold on major stock exchanges.

Smaller Limited Liability Companies (LLCs) or individual investors operating under corporate structures comprise a substantial portion of corporate ownership. An LLC allows investors to own and manage real estate while protecting personal assets from property-related liabilities. Legal claims against a property titled under an LLC generally target the LLC’s assets, not the owner’s personal wealth. Many individual investors or small groups form LLCs for liability protection and potential tax advantages, such as deducting depreciation and operational expenses. These entities often focus on acquiring single-family homes or smaller multi-family units for long-term rental income.

Driving Factors Behind Corporate Investment in Housing

Corporate entities are motivated to invest in residential real estate by several economic and market factors.

A primary driver is the stability of rental income. Residential properties, especially long-term rentals, provide predictable monthly cash flow. This consistent revenue stream can cover mortgage payments, property taxes, and maintenance costs, contributing to financial stability. For large investors, this steady income helps demonstrate reliable revenue streams, facilitating financing for additional property acquisitions. Tenant stability further enhances rental income stability, as long-term tenants reduce turnover costs and ensure predictable cash flow.

Another significant factor is the potential for property value appreciation. Real estate values generally increase over time, offering investors capital gains. Appreciation can be “organic,” driven by market dynamics like supply and demand, or “forced,” through property renovations. Factors such as a strong local economy, population growth, new infrastructure, and desirable neighborhood characteristics contribute to property appreciation. Corporations recognize that real estate can serve as a hedge against inflation, as property values and rental income tend to rise with inflation, while fixed-rate mortgage payments remain stable.

The scalability of managing large housing portfolios motivates corporate investment. For institutional investors, acquiring and managing hundreds or thousands of properties enables economies of scale in property management, maintenance, and tenant services. This large-scale operation can lead to reduced per-unit costs and increased efficiency. The ability to make all-cash offers provides a competitive advantage in the acquisition process, allowing corporations to secure properties more quickly than individual buyers who rely on financing. This streamlined process enables rapid portfolio expansion.

Tax advantages play a role in attracting corporate investment. Rental property owners can benefit from various tax deductions, including depreciation of the property’s value, mortgage interest payments, and operational expenses. These deductions can reduce taxable income and enhance overall profitability. For REITs, the requirement to distribute a high percentage of taxable income as dividends allows them to avoid corporate income tax, passing the tax burden to shareholders.